Maker’s Weekly Chart Analysis

• Bearish Swing Structure: Maker (MKR) exhibits a bearish swing structure on its weekly chart.
• Active Addresses Rise: The increase in active addresses and network growth may not sustain recent price movements.

Maker (MKR) experienced a substantial 60% rise starting February 16, fueled by heightened demand and momentum shifts on shorter timeframes.

Recent Developments

On February 20, Whale Alert reported the burning of $156.77 million worth of MKR from an unknown wallet through eight transactions, prompting traders to anticipate a price increase from the supply reduction. However, this event did not trigger the expected momentum.

Data from Santiment indicates that the recent price increases in MKR were accompanied by greater daily active addresses and network growth, offering bullish signals for the lending protocol. Nevertheless, the token is currently situated at a considerable resistance zone, leading to speculation that a breakout past the $1,750 mark might be impeded in the coming days.

Profit-Taking Advice for MKR Traders

The weekly timeframe indicates a bearish swing structure for Maker. The February sell-off caused MKR to establish a lower low beneath the October 2024 lows of $1,000.

Following this, the price surged to the $1,600 area, which extends to $1,730—a resistance zone that has been respected since February 2022. This area was retested as resistance in December before the price saw fresh local lows.

A further bearish sign is the lack of reaction from the 78.6% Fibonacci retracement level in previous weeks. MKR has dropped below this level twice in recent months, suggesting a continuation of the downtrend.

The Chaikin Money Flow (CMF) metric lies at -0.04, having remained below -0.05 since August 2024, highlighting persistent capital outflows and selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicates prevailing bearishness but is nearing a bullish crossover below the zero line.

Overall, the weekly chart suggests a significant chance of a reversal in Maker’s fortunes. A breakout above $1,800, followed by a retest as support in the coming weeks, could instill hope in swing traders. In such a scenario, movement towards $2.4k could materialize.

The liquidation chart spanning three months reveals a concentration of liquidations just above $1.6k, peaking at $1,755, aligning well with the identified technical resistance zone.

Consequently, MKR traders should consider taking profits as prices near this key resistance. They should refrain from hastily entering short positions and monitor lower timeframes for indications of bullish weakness.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.