Maker (MKR) Breaks Resistance, Bullish Trend Emerging but Faces $2,000 Hurdle

Key Takeaways

• Breakout from the descending channel confirms bullish reversal potential.
• Key resistance levels lie at $2,300 and $2,722, with support at $1,533.
• The $1,280 support zone remains crucial for accumulation if retracement deepens.

Maker (MKR) has significantly recovered after hitting its October low of $1,000, surging to $2,080 before retracing to $1,714.

This breakout from its descending channel suggests that it has completed its corrective phase and is shifting toward a bullish one.

However, around $2,000, some signs of struggle are seen, raising the question of whether the rise can continue.

MKR Price Analysis

The daily chart of Maker (MKR) highlights a significant recovery from its corrective structure, with the price rebounding from its low of $1,000 in October.

It reached a high of $2,080 on Nov. 25 but immediately fell to $1,714, leaving a wick on the daily candle. 

This upward move broke the descending channel, signaling the potential conclusion of the ABC correction. The rejection aligns with the 0.618 Fibonacci retracement level at $1,880, a critical zone for maintaining the bullish recovery.

The Relative Strength Index (RSI) is climbing but remains below overbought territory, indicating continued momentum with room for further upside.

If the rally is sustained, the next key resistance will be at $2,300 (0.5 Fibonacci level), with a broader target of $2,722 (0.382 Fibonacci). 

However, a rejection at current levels may lead to a retest of the $1,280 support (0.786 Fibonacci), which has acted as a strong accumulation zone in prior consolidations.

Key Observations:

• Breakout from Descending Channel: The breakout signals the end of the corrective phase and a shift toward bullish momentum.
• Key Fibonacci Levels in Play: Price recovery aligns with the 0.618 retracement at $1,693, with potential resistance at $2,300 and $2,722.
• Support at $1,280: This level provides a solid base for accumulation if a retracement occurs.

MKR’s ability to sustain above $1,693 will be critical in confirming the bullish trend. A decisive breakout above $2,300 would target the next major resistance, while a pullback could lead to consolidation around $1,280 before resuming upward momentum.

MKR Price Prediction

The hourly chart indicates the potential completion of a five-wave impulsive structure, with the peak at $2,062 marking the end of wave (v).

The price is now entering a corrective phase, forming an ABC pattern. Additionally, the first leg of the correction (wave a) is underway, with the price currently testing the previous descending resistance for support. 

The Fibonacci retracement levels provide a clear roadmap for potential pullbacks, with key support at $1,658 (0.382 Fib) and $1,533 (0.5 Fib).

The price is trending downward from overbought levels, signaling weakening bullish momentum and an increased likelihood of further downside in the near term.

However, the broader bullish structure remains intact if the price exceeds $1,408 (0.618 Fib).

Key Levels to Watch

Support Levels:

• $1,658 (0.382 Fibonacci retracement): Immediate support for wave a completion.
• $1,533 (0.5 Fibonacci retracement): Critical support within the corrective structure.
• $1,408 (0.618 Fibonacci retracement): Key level to maintain the broader bullish trend.

Resistance Levels:

• $1,813 (0.236 Fibonacci retracement): Immediate resistance in case of a bounce during wave b.
• $2,062: Wave (v) high, key for confirming a bullish continuation.
• $2,300: Broader resistance aligning with the higher-degree structure.

MKR’s ability to hold above $1,533 will be critical in sustaining the bullish trajectory.

A break below $1,408 could signal a deeper retracement toward $1,231 (0.786 Fib). While a bounce above $1,813 would suggest wave b development and set the stage for further upside.