MAKER Price Analysis: Is a Head & Shoulder Pattern Signaling a Drop?

Maker token has been one of the best performers over

the last four weeks. Its bulls have dominated during this time, but many factors indicate that they may be about to take a break.

MAKER was trading at $1,080 at press time, indicating an 85% gain from its most recent local low of $581. Within the last four weeks, there has been an excellent bullish performance. Nonetheless, MKR's bullish momentum was about to be broken, so investors should keep an eye out for incoming sell pressure.

On a daily chart, Three Black Crow patterns have formed indicating that bears are heavy on bulls and panic selling pressure can be seen in coming days. MKR reversed from a long-term falling resistance line, which was one of the reasons for the above expectation. This system has been active since May 2022 and has so far held strong. Interestingly, the price of MKR fails to breach the resistance line and falls from there.

On the hourly chart, MAKER is trading in Head and Shoulder pattern as well as falling channel line. The Neckline of Head and Shoulder pattern is seen as $1060 level. If bears breach this level with heavy volume then panic selling may start.

According to chart analysis, the price has been trading in the rising channel line since September 19th, and the coin is trading within the channel. Yesterday, the price retested the upper channel line and reversed from there as bears grabbed control, expecting to test the channel's lower level.

The currency is trading close to the 21 period EMA and 9 period EMA, indicating that the bears are in charge of the MKR market. The relative strength index is 43, and the signal lines are pointing down, indicating a sell signal.

According to CoinGabbar Price Analysis, the market capitalization of this MKR is expected to be $1,058,881,710. The coin's 24-hour trading volume is roughly $82,636,994. The market capitalization of MKR has fallen by 3.36%. However, trading volume increased by 13.71% during intraday trading. The market capitalization to volume ratio is 0.1377.

On the upside, the price is coming up against resistance around $1105. The first significant big obstacle is at $1165. A strong break over $1165 might signal the start of a strong rally towards $1200. Any more gains might open the door for a move towards the $1250-$1300 resistance area.

If the maker fails to break through the $1105 level, it may enter a fresh downtrend. On the downside, an initial support level of $1060 has been formed. The next significant support level is around $1030. If the price goes below $1030, it may approach the $1000 support level. Any more losses may accelerate selling, and the price may go below 900, maybe as low as $890.

KEY LEVELS :

RESISTANCE LEVEL : $1120-$1150

SUPPORT LEVEL : $1060-$1030

On the hourly chart, a Head and Shoulder pattern with a neckline can be seen at $1060. Will MAKER break through the neckline and reach the $1000 mark? Please share your thoughts.