Maker DAO’s MKR token was amongst the greatest performers in the final 4 weeks. Its bulls have dominated throughout this time however a number of components presently counsel that they is likely to be about to take a break.
Here’s AMBCrypto’s worth prediction for Maker [MKR] for 2022-2023
MKR traded at $1,116 at press time which represented an 89% upside from its newest native low of $581. An spectacular bullish efficiency inside the final 4 weeks. Nevertheless, MKR’s bullish momentum was about to be disrupted, therefore traders ought to look ahead to incoming promote strain.
One of the causes for the above expectation was that MKR retested a long-term descending resistance line. The latter has been energetic since August 2021 and has held sturdy up to now. Interestingly, MKR’s worth motion simply crossed above this similar descending resistance line in the final two days. Subsequent upside has been restricted since then.
The spectacular rally ensured that MKR’s worth was already deep in overbought territory. Furthermore, the cryptocurrency’s Money Flow Index (MFI) revealed that liquidity had been flowing out of the cryptocurrency. In different phrases, some MKR holders had been cashing out.
MKR had not registered important draw back at press time regardless of the outflows indicted by the MFI. A possible cause for this could be the presence of some demand cancelling out the promote strain. Additionally, MKR could favor the bears as soon as that demand fades out.
Will MKR bears take over?
Multiple on-chain metrics additionally confirmed that promote strain elevated considerably after the resistance retest. For instance, MKR’s age consumed metric registered its largest four-week spike inside the final 24 hours. This indicated that giant quantities of cash had been moved inside the similar interval.
Meanwhile, the imply coin age metric dropped to the lowest month-to-month level inside the final 24 hours. This confirmed that extra cash have been moved these days. This was additionally per promote strain in the overbought zone or resistance vary.
A take a look at the provide dynamics confirmed that MKR was presently dealing with loads of incoming promote strain. The provide held by prime addresses grew considerably from 12 to 17 October. The similar metric additionally confirmed sharp outflows in the final two days.
The provide held by prime addresses dropped nearly to 12 October ranges. If we use this to gauge the anticipated upcoming drop, then MKR’s worth would possibly drop below $900 in the next few days.
The retail section will ultimately mimic prime addresses/whales, and once they do, MKR will expertise heavy promote strain. Although this end result is extremely possible, MKR traders also needs to preserve a watch out for the macro outlook. A significant shift in favor of cryptocurrencies could help extra upside, therefore a non-zero probability of prolonged upside.