After a period of pullback, Maker [MKR] has staged a strong bullish rebound on the daily timeframe, breaking above the $1,200 price level.
Active bulls saved MKR from getting stuck in a bearish downtrend.
Bears are getting caught out by unexpectedly bullish price action.
Maker [MKR] posted a strong bullish candle on the daily timeframe to maintain its upward momentum. Previously, the price of MKR had fallen from $1,348 to $1,200.
A surge in liquidity providers turning to MakerDAO could help extend MKR’s strong bullish outlook, with shorter time frames offering more buying opportunities.
Recovery at key Fibonacci levels maintains bullish outlook on daily timeframe
Between August 2 and 7, MKR fell 14% after a surge above $1,300. This was likely a result of a significant drop in whale transactions in early August.
However, as shown by the Fibonacci retracement tool on the daily timeframe, the drop did not derail the bulls. Buyers rebounded strongly from the 50% Fib level ($1,186) to keep MKR above the $1,200 price level.
Chart indicators highlight the bullish outlook. The relative strength index (RSI) moved out of overbought territory but still retains buying pressure with a reading of 61. The on-balance volume (OBV) also continues to move higher, showing good demand for MKR.
According to the Fibonacci levels, buyers are targeting profit levels at $1,287 (23.6% Fibonacci) and $1,350, which is just below the $1,378 resistance. On the other hand, if the price rejects any of the Fibonacci levels above the current price, it could reverse the momentum in favor of the bears.
Sellers get caught up in bullish price action
MKR’s bullish price action over the past 24 hours has put market speculators who hold short positions in the futures market in a bind. Data from Coinglass shows that short positions suffered liquidations worth $117,490 million. This accounts for 82.2% of the total liquidations during the period.
Overall, MKR appears set to continue its bullish uptrend despite the volatility in Bitcoin’s price action.