In comparison to other assets in the market, MKR has faced challenges in making substantial gains on the monthly charts, registering only a 25% increase. Notably, the cryptocurrency has experienced significant price fluctuations recently, including a 24-hour decline of 0.25%. Nonetheless, current market sentiment hints at a potential recovery from its current levels.
Recent analysis by CryptoCrypto suggests that influential investors are behind the recent downtrend of MKR. An upward bounce is probable if the crucial support level holds, opening up opportunities for further growth.
Is MKR poised to reach $3,970 in the near future?
MKR recently broke out of a descending channel that had contained its price movements since March. Despite this breakout, the token has struggled to gain momentum and remains below projected levels.
At the time of reporting, MKR was trading within a significant support range around $1,854.09, extending downwards to $1,656.55. Historically, this zone has served as robust support, potentially propelling MKR towards $3,970 if maintained.
To realize this growth, MKR must stay within the defined range and sustain buying interest at these levels.
Significant buy order detected for MKR at key support level
Insights from IntoTheBlock reveal a substantial buy order for MKR at a crucial support level identified using the In/Out of Money Around Price (IOMAP) metric, a tool that pinpoints essential support and resistance levels for traders.
Data highlights a strong support zone at $1,858.03, closely aligning with the technical chart’s support line. At this level, 1,020 addresses have collectively placed buy orders totaling 150,560 MKR, indicating concentrated buying interest.
The buy activity at the $1,858 support zone suggests a possible catalyst for MKR’s upward movement, potentially leading to a price surge.
Additionally, indications of a bullish divergence are emerging, with a significant drop in large transaction counts and volume, signifying weakening selling pressure. This decrease in selling strength enhances the chances of a rally towards higher levels, possibly $3,970, as MKR approaches the support zone.
Derivative market issues a cautionary signal
The derivative market shows an increasing bearish sentiment, with more traders betting on MKR’s decline rather than an upsurge based on the long-to-short ratio.
Currently, the long-to-short ratio stands at around 0.75, considerably below the neutral threshold of 1, indicating a significant rise in short positions for MKR.
Continuation of this trend could diminish the chances of a price rebound from the current support range. Reversing this scenario would necessitate a shift in sentiment, with more derivative traders opting for long positions on MKR.