The Maker (MKR) cryptocurrency price has rebounded by $1,450 since September 17. However, the price action has yet to break out of its consolidation pattern.
The downtrend so far has resulted in a drop to a four-month low of $1,440 last week. MKR price continues to face bearish pressure and is trading under a bearish influence.
Amid improving market sentiment, the MKR cryptocurrency is seeing lackluster demand and is stuck in a tight range. A positive weekly candle for the Maker cryptocurrency is usually cause for celebration, but its close remains below its 200-day moving average, which does not bode well for bulls.
Unless it breaks out and closes above $1,700 it will validate a range breakout, which could allow for a sharp upside in the coming sessions.
MKR Price Prediction: Will a Range Breakout Occur?
According to the daily chart, MKR price is showing slight bullish signs and is nearing the end of a correction phase. Despite the range-bound movement, the Bollinger Bands have contracted, which suggests that there could be significant volatility in the coming sessions.
At press time, the Maker cryptocurrency is trading at $1,590.92, having fallen slightly by 0.18% over the past 24 hours. Its market cap is $1.48 billion, with a volume-to-market cap ratio of 0.0342.
Additionally, the Average Directional Index (ADX), used to confirm the strength of a market trend, is at 31, with an ADX above 25 typically highlighting a relatively strong trend.
However, the Relative Strength Index (RSI) is below the midline zone. Its reading is 41, indicating a slightly pessimistic outlook.
The Money Flow Index (MFI) is around 50, indicating a lack of significant capital inflows into the market. This is leading to price consolidation.
Popularity soars
Generally, social dominance measures the level of attention a cryptocurrency receives relative to other cryptocurrencies. A rise in this value indicates a surge in discussion about the MKR cryptocurrency, which is crucial to maintaining its gains. At press time, the social dominance value is around 0.471%.
However, the weighted sentiment reading is close to the midline area, hovering around -0.41. This means that investors still lack confidence in buying MKR at current price levels.
Amid MKR price consolidation, the OI-weighted funding rate has remained positive since September 18. This means that traders are holding on to their long positions and anticipate a sharp rise in the coming sessions.
Moreover, futures open interest (OI) rose by 8.65% to $94.58 million. This reflects the long-term accumulation activity in the past 24 hours.
The immediate support is near $1500 and $1420, while the resistance is near $1660 and $1780. It is worth mentioning that it is very important to keep a close eye on the price action.
