Maker (MKR) Price Surges 40% — Flashes Signs of Trend Reversal

Key Takeaways

• Maker (MKR) has followed a support trend line for 777 days.
• Long-term indicators suggest the MKR price correction is over.
• Has MKR started a bullish trend reversal and where is it headed?

MKR has been one of the best performers in the crypto market rebound since Feb. 3.  While the Bitcoin price trades 4% above its Feb. 3 low, Maker has surged by 50% and is approaching its yearly high.

Long-term bullish signals emerged before the rally, but the MKR price still needs to clear an important resistance level to confirm that the uptrend is legitimate.

Let’s look at the price action and see how likely this is and where MKR will go to if it breaks out.

MKR Price Bounces

The MKR price has fallen inside a descending parallel channel since its 2024 high of $4,074 in April 2024, culminating with a low of $778 on Feb. 3. Maker has increased since, validating a long-term ascending support trend line that has existed since the start of 2023. This was the third bounce (green icons) since its creation.

Maker has increased by 50% since the bounce, moving in the channel’s upper portion, a sign that a breakout may be impending. Today, the MKR price attempts to move above the $1,200 horizontal resistance area, something that would make a breakout much more likely.

On top of the positive price action, technical indicators support a breakout. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences (MACD) during the most recent bounce. Such divergences in the weekly time frame often lead to bullish trend reversals.

Therefore, the weekly time frame outlook suggests the MKR price has started a bullish trend reversal and will soon break out from its channel.

MKR Price Breakout

Maker’s wave count give a bullish prediction, aligning with the price action and indicator readings. The most likely count shows the MKR price has completed a five-wave downward movement.

While the fact that there is a bearish impulse suggests the MKR long-term trend is bearish, the completion of the decrease means a considerable bounce is likely.

If the count is accurate, Maker has started an A-B-C relief rally which will lead to a breakout from the parallel channel. A likely target for the top is between $3,200-$3,375, created by a horizontal and Fibonacci resistance.

In this count, wave A is expected to trigger a breakout from the channel while wave B validates it as support. Wave C would then take the MKR price to the final target of $3,200-$3,375. The daily RSI and MACD reinforce this outlook, since they have crossed above their bullish thresholds at 50 and 0, respectively.

Conversely, breaking down from the long-term support trend line will invalidate the count. This would mean that the long-term trend is bearish, putting the MKR price at risk of a drop toward $500. It remains the less possible scenario.

Bullish Months Ahead

The MKR price shows several decisive bullish signs. The bounce at its long-term ascending support trend line combined with several bullish divergences both point to an impending breakout. A breakout from the long-term parallel channel will confirm the trend reversal and could lead to a high above $3,000.