MKR Technical Analysis: Downfall Can Bring Prices Closer to $2200

Maker (MKR), which is the governance token of MakerDAO/Maker Protocol, is both a decentralized organization and a software platform based upon the Ethereum blockchain. Moreover, it allows users to issue and manage DAI stablecoins.

Past Performance of MKR

The MKR coin price breaks out of a head and shoulder pattern in the daily chart, resulting in a downfall below the $2800 support zone. The breakout of the bearish pattern caused an 8% fall yesterday, resulting in a bearish engulfing candlestick. Furthermore, the bearish follow-through candle drives the prices lower.

MKR Technical Analysis

The falling MKR coin prices are under extreme selling pressure, evident by the bearish engulfing candlestick pattern. Hence, a downtrend to $2200 is plausible, with a short consolidation phase near the $2600 mark in a shorter timeframe.

The downtrend can face some support levels during the fall, which may attempt to provide demand for some short-retracements. According to Pivot Points, these levels are at $2450 and $2175. And on the opposite end, the $2975 and $3220 await some future action.

The RSI slope falls below the central mark in the daily chart, indicating the rise of selling pressure. Furthermore, the downtrend in the slope from 73% to 45% in the daily chart, which means a further downfall. Hence, the RSI indicator gives a sell signal.

The MACD and signal lines generate a bearish crossover in the daily timeframe, indicating a downfall in the MKR coin price trend. Moreover, the intensity of histograms indicates increasing bearishness. Hence, the MACD indicator gives a sell signal.

Upcoming Trend

As per the technical analysis of Maker, the bears are taking over the MKR coin price trend. The price action levels combined with the technical indicators project a downfall to the $2200 mark. Hence, traders can find profitable selling opportunities at current prices.