Title: Maker [MKR] Surges 60% This Week, But Consider Selling

The cryptocurrency Maker [MKR] experienced a substantial 60% surge starting from February 16th, driven by rising demand and a shift in short-term momentum.

On February 20th, Whale Alert, a platform formerly known as Twitter, reported a series of transactions where $156.77 million worth of MKR tokens were burned from an undisclosed wallet.

Traders expected this reduction in token supply to push the price higher; however, the burn did not spark the anticipated momentum.

Analytics from Santiment revealed that the uptrend in MKR prices during the last couple of weeks coincided with a noticeable increase in daily active addresses and network expansion.

While these were positive indicators for the lending platform, the MKR token encountered a strong resistance level, suggesting that a breakthrough past $1,750 might face obstacles in the near future.

It Might Be Wise for MKR Traders to Secure Profits

Analysis of Maker’s weekly chart structure displayed a bearish pattern. A decline in early February led to a lower low compared to the October 2024 low of $1k.

Furthermore, the price has climbed to the $1,600 zone (cyan).

Extending to $1,730, this zone acted as a firm resistance level that the price has honored since February 2022. It was also tested as resistance just recently in December, before the price experienced new local lows.

Another bearish sign was the lack of response from the 78.6% Fibonacci retracement level in recent weeks.

Maker has slipped below this level twice in the past four months, indicating a possible continuation of the downtrend.

The Chaikin Money Flow (CMF) stood at -0.04 but has remained below -0.05 since August 2024, showcasing consistent capital outflows and selling pressure.

Additionally, the Moving Average Convergence Divergence (MACD) indicated prevalent bearish sentiment, although it hovered on the brink of a bullish crossover below the zero line.

Overall, the weekly chart suggested a significant chance for a Maker reversal. If there’s a breakout above $1,800 followed by a retest as support in the next one to two weeks, swing traders could find some optimism.

If such a scenario plays out, a move towards $2.4k might come into play.

Observing the 3-month liquidation chart, a concentration of liquidations was noted slightly above $1.6k, reaching up to $1,755, aligning well with the aforementioned technical resistance zone.

Therefore, Maker traders are advised to consider securing profits as MKR approaches the crucial overhead resistance level. Hastily entering short positions is not recommended, and it would be prudent to monitor lower timeframes for indications of potential bullish weakness.

Disclaimer: The opinions expressed in this article are personal and do not constitute financial, investment, trading, or any other form of advice.