MAKER Token Price Analysis: MKR token price is trading at the supply zone after bouncing off the demand zone, will it give a breakout?

• The MKR token price is consolidating near the supply zone on a daily time frame
• The MKR token price is forming a rounding bottom pattern on a daily time frame.
• The pair of MKR/BTC is trading at the price level of 0.0355 with a decrease of -0.95% in the past 24 hours.

The MKR token price as per the price action is hovering around the supply zone on a daily time frame. The token price can be seen turning bullish for a shorter time frame, as it bounced off the demand zone. The token price has shown a U-shaped recovery from the bottom. At present, the MKR token price is forming higher high and higher low formations on a daily time frame. The token price has managed to sustain above the long-term demand zone on a daily time frame. Despite the recent bearishness in the market, the token price showed a rapid bullish trend. At present, the MKR token price is trading below 50 and 100 MA. The global market bearishness led to token price falling below the 50 and 100 MAs Wayback. Since then the token price is trading below it and moving towards it can face strong bearish pressure from these MAs. The MKR token price is trading at the upper band of the Bollinger band indicator after bouncing off the lower band. Volumes have increased causing the volatility to increase. The range of the Bollinger band indicator has narrowed indicating a sharp move on the upcoming training days on either side. 

The MKR token price is forming a running bottom pattern on a daily time frame

Supertrend: The MKR token price has fallen rapidly in the past month following the bearish sentiments in the overall cryptocurrency market. As a result, the MKR token price has started trading in the long-term demand zone. Recent bearishness in the price of MKR token price resulted in the breakdown of the super trend by line. Previously, the super trend buys line was acting as a strong demand zone. The breakdown of the super trend buy line, was with a strong bearish candlestick pattern. As of now, the super trend indicator has triggered a sell signal. Moving upwards the token price can face strong rejection of the super trend sell line.

Relative Strength Index: RSI curve is trading at the price of 45.87 as the token fell to the demand zone. At present, the RSI curve has crossed the 20 SMA. The token is forming lower low and lower high formation on a 4-hour time frame as the token shows bearishness in the higher time frame. The MKR token price can be seen moving if it sustains the recent gains and breaks the supply zone and if it does then the RSI curve can be seen moving even higher up supporting the trend, crossing the 50 halfway mark

Average Directional Movement Index:  ADX curve has been falling for the past couple of days. This has come after the token price failed to surpass the supply zone. At present, the ADX curve is transacting at 24.45. Recent bearishness has resulted in the ADX curve slipping below the 25 Mark. If the token price fails to bounce off the demand zone, the ADX curb can be seen losing strength and falling further.

CONCLUSION: The MKR token price is trading at the supply zone, and as the price action suggests, is forming a bullish chart pattern. As per technical parameters, the token price can stay in a bullish trajectory. As the token price has formed a bullish candlestick pattern at the demand zone, it remains to see if the MKR token price successfully breaks the supply zone or falls from it. An investor should remain cautious and wait for a proper signal and then act accordingly.

SUPPORT: $600 and 586

RESISTANCE: $650 and $685

News Source