- Within its symmetrical triangle pattern Maker (MKR) shows signs of a coming major price movement through a breakout or a breakdown.
- The price movement within the symmetrical triangle signals potential price movement of 30% which will find resistance at $1,503.52 and support at $1,374.11.
- A supportive breakout can make MKR reach $1,801.3 while a downward movement through support could drive it to $1,019.75.
Maker (MKR), the governance token behind the decentralized finance protocol MakerDAO, is currently exhibiting a technical pattern that traders often associate with major price movements. An 12-hour symmetrical triangle pattern developed on the chart which indicates that the asset is approaching significant price compression. Traders believe a price movement potentially reaching 30% will occur because the triangle continues to get smaller in the market.
MKR Price Hovers Near Resistance as Volatility Compresses
The market price of MKR currently stands at $1,484.46 while the trading value has experienced an 8.0% upward trend throughout the past day. MKR currently trades at $1,484.46 close to its upper symmetrical triangle border beneath the vital resistances at $1,503.52. This resistance served as a previous point where negative market pressure occurred. The price currently rests at $1,374.11 as fundamental support which prevented recent market descents.
The symmetrical triangle pattern in a chart functions as a non-biased structure which signals that prices will pause for consolidation before a price move occurs. This pattern consists of trendlines which move toward one another where one originates from peaks and the second originates from valleys. The price of MKR has moved back and forth between those lines during multiple weeks while exhibiting less volatility before such movements tend to occur.
MKR Faces Key Fibonacci Levels as Price Eyes Breakout or Breakdown
Historical price reactions appear in the chart through Fibonacci retracement levels that demonstrate significant price movement locations. Technical and psychological barriers operate at $1,505.3 (0.5) and $1,196.1 (0.382) Fibonacci levels where MKR has experienced multiple prior engagements.
If MKR succeeds in breaking through the triangle resistance at $1,503.52 then the next potential target exists near the 0.618 Fibonacci level at $1,801.3. A drop below the $1,374.11 support level would trigger potential debasement of MKR toward $1,019.75.
Market Implications and What to Watch
The present market structure indicates undecided market conditions which frequently emerge when important news events or changes in sentiment develop. The market direction will become more evident through changes in volume and volatility measurements within a constricting trading range. Directional market movement becomes more reliable when it breaks out while trading volume experiences an evident increase.
MKR will remain under close examination by traders and market members to determine short-term trends following a breakout confirmation. The symmetrical triangle provides investors with a technical approach to predict future price actions in MKR although it remains uncertain which direction future trends will evolve.
