MakerDAO, who develop the decentralized stablecoin Dai (DAI), have just launched their expanded collateral options to include cryptos beyond just Ethereum (but still within the Ethereum ecosystem). Therefore, we thought it would be a good time to take a look at MKR, and see how the market is reacting.
Starting on the 3-day MKR/BTC chart, we see that MKR has been in a general uptrend since early September, and that another big jump came in early November. Price is now getting bogged down in a clear region of resistance, derived from previous support.
MKR/BTC by Charts.Cointrader.Pro
We see a rejection as price tried to leave this zone, between about ₿0.08-075. The best case scenario at the moment is probably consolidation within this zone, if not a retest further down on the next resistance zone starting at ₿0.065.
Moving to the 1-day chart, we see some signs of exhaustion as the RSI diverges bearishly. The histogram is also pulling in, and contracting on its highs. We see that the MACD is hanging in the air and stands a good chance of crossing down with the histogram.
MKR/BTC by Charts.Cointrader.Pro
The 8 EMA is the level to watch here, as it seems to be holding MKR well for now. If it does, we could see consolidation range between the 8 EMA and ₿0.08; and if not, the 21 EMA would be a pretty good bet.
Finally, if we zoom way into the 4-hour chart for the local price action, we see that MKR looks likely to drift down to the 55 EMA, at about ₿0.074, where the next local support can be derived from previous support. A double top into overbought conditions on the RSI will likely need at least a moment to cool off, and the 21 EMA already looks to be lost, along with the present support.
MKR/BTC by Charts.Cointrader.Pro
On the other hand, if price can crawl back above the 21 EMA before this candle closes, it would be a surprise sign of strength and possibly signal an entry potential for a long in the coming days.
Overall, we can say that Maker/BTC looks to be in a long term uptrend. On the other hand, if the present Bitcoin downtrend really starts to bite, this may not help Maker versus USD (or DAI!). Either way, MKR looks like it may need to cool after almost doubling in the past couple of months.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
