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HomeCrypto NewsMarketExpert Identifies MakerDAO (MKR) Sell Signal After 173% Bullish Run

Expert Identifies MakerDAO (MKR) Sell Signal After 173% Bullish Run


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MakerDAO (MKR) could be on the verge of a massive correction following an impressive 173% bullish run, a technical analyst warns.

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Renowned trader Ali Martinez has sounded the alarm for MakerDAO (MKR) investors, pinpointing a significant sell signal on the weekly chart following an impressive 173% bullish surge. 

In a post on X, Martinez highlighted that the TD Sequential indicator had signaled a potential downturn for MKR, with a warning of a weekly close below $1,163, possibly leading to a corrective move down to either $1,037 or $935.

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The TD Sequential identifies potential trend reversals and exhaustion points. This signal, if validated, suggests that the recent bullish momentum could be losing steam, prompting traders and investors to exercise caution. 

The 100-weekly moving average at $1,295 has been indicated as a critical level to watch. Ali asserted that if MKR manages to close above this level, it might invalidate the bearish scenario proposed by the indicator.

MKR’s Rollercoaster Ride

Notably, this downtrend follows the considerable gains MKR secured during June and July. The combined increase of 78.19% over these two months underscored MKR’s market potential to embark on solo rallies.

Interestingly, MakerDAO was already on a bullish run when XRP received legal clarity from Judge Torres’ ruling. The ensuing bullish market-wide sentiments compounded MKR’s rally. MKR rallied from a low of $511 on June 10 to a 15-month high of $1,370 on August 8.

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Regrettably for investors, the euphoria ended shortly after the recent high. MKR immediately witnessed a downward trajectory after hitting the $1,370 peak, which has persisted over the past two weeks. However, some traders have already begun placing short positions amid the drop.

MKR has experienced a notable decline of 4% in the past week, with a significant 5.11% drop occurring just today. This downtrend comes on the heels of an elongated consolidation phase observed last week. 

MakerDAO has continued to battle the bears, hedging against any significant drops. However, August has proven challenging for the asset as it has registered a 4.89% decline. MakerDAO is trading for $1,168 at the time of reporting.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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