Grayscale Fund Announcement Sparks Maker (MKR) Price Rally But Breakout at $2,150 Remains Elusive

Maker’s MKR token has surged 25% from its recent low on Aug. 5, buoyed by the announcement of a new Grayscale fund.

However, the rally has stalled at a critical resistance level, leaving investors wondering if MKR can break through the $2,150 barrier and continue its upward momentum.

Grayscale Adds Maker

On Aug. 14, 2024, Grayscale announced it would offer its investors a new single-asset crypto fund that contains MKR. Grayscale stated that the fund launch will expose investors to the entire Maker ecosystem.

The Grayscale MKR trust manages $226,904, and its Net Asset Value (NAV) per share is $12.77.

In other positive news, the DeFi Education Fund announced the purchase of a patent related to Oracle technology from True Return Systems.

They will dedicate it to the public, ending a lawsuit against Maker and ensuring that similar lawsuits cannot be filed in the future.

Can MKR Reclaim Resistance?

The daily chart shows that Maker has fallen since its yearly high of $4,075 in April. At first, the price bounced at the $2,150 support area (white circle), temporarily ending the decline.

However, after creating a lower high (black icon), it plunged quickly and broke down from the area on Aug. 5. The decline led to a low of $1,720.

After the breakdown, bulls stepped in and pushed the MKR price higher, taking it back to the $2,150 area. Whether it breaks out or gets rejected is important for the future Maker trend since it will determine if this is a retest or a rejection.

Unfortunately, the RSI and MACD do not help confirm, which is more likely since both give mixed signs. While the RSI is increasing, it is below 50. Similarly, the MACD is close to making a bullish cross but is deep into negative territory.

So, to establish whether the trend is bullish or bearish, we need to look at a longer time frame and wave count.

Long-Term MKR Bullish Trend Intact

Raking a step back to assess the broader market context, the technical outlook for MKR appears increasingly bullish.

A closer examination of the wave count suggests that a five-wave upward trend is unfolding, with the recent low on August 5 marking the completion of wave four.

Notably, this bounce occurred precisely at the 0.618 Fibonacci retracement support level, reinforcing the validity of the support trend line within the descending parallel channel.

In this case, the 1.61 external Fibonacci retracement of wave four will create the target for wave five. The Fibonacci method predicts a high of $5,525, very close to the all-time high price of $6,391.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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