Maker (MKR) is close to breaking above the 277-day resistance

Maker (MKR) has been rising since January 22nd and it is currently attempting to break a long-term resistance level.

Difference

Maker is down since hitting an all-time high of $6,348 on May 3, 2021. The initial drop was sharp, hitting 71% in just 20 days. This decline led to a local low of $1,829 on May 23.

After bottoming out, MKR rallied and consolidated for 238 days. On January 22, it appeared to have fallen below the low of May 23 (red line). However, it regained that level shortly after, making the previous breakout just a deviation.

Such divergences are generally considered bullish developments and often result in sustained moves in the opposite direction.

 Source: TradingView

Current trading model

Technical indicators on the daily time frame are bullish. This is most evident when the RSI has moved above 50 (green icon). The RSI is a momentum indicator and values ​​above 50 are considered bullish.

In addition, the MACD is also rising, although it has not yet entered positive territory.

MKR has been trading along a descending resistance line since the all-time high mentioned above. MKR is currently making its third escape attempt. If successful, the next resistance will be found at $4,000. This is the 0.5 Fib retracement resistance and horizontal resistance area.

 Source: TradingView

Count waves

Trader @ewfib tweeted an MKR chart and said that it has probably completed its correction and will continue to rise.

The source: Twitter

The most likely wave count shows that MKR has completed a bullish impulse and corrective structure since September 2020.

In the correction structure, the W and Y waves have a ratio of 1:0.618, which is the second most common of these structures after the 1:1 ratio.

If the structure is right, it means that MKR has started a new uptrend that could take it to all-time highs and beyond.

A drop below the wave Y swing low of $1,616 (red line) will invalidate this structure.

Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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