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MKR Approaches Golden Cross, Is It Bogus Or Will It Intersect?

Published 03/02/2023, 02:21 AM
Updated 03/02/2023, 02:30 AM
MKR Approaches Golden Cross, Is It Bogus Or Will It Intersect?

  • Maker wins the title as the top gainer after its prices surged by 17% in value within 24 hours.
  • MKR is nearing a Golden Cross; this could be an actual cross or a bogus attempt.
  • Scalpers and intraday traders should be on the lookout as volatility is present as large as life in the market.

Maker (MKR) won the title for the top gainers within the last 24 hours, according to CoinMarketCap. The token gained ≈17% in value within the last 24 hours and as of press time is trading at $893.55 with a market cap of $873,626,959 which is up by ≈16.5%.When considering the daily chart below, MKR had a gradual rise in price throughout the day. Although during the early hours of the morning, the token was moving sideways between the $760 and $800 range, MKR broke its confined fluctuation at the first sight of daylight at around six o’clock. Thereafter, the token rose through the stages and reached a maximum of $929.65.

MKR/USDT 1-day Trading Chart (Source: CoinMarketCap)

When considering the daily chart Above, MKR had a gradual rise in price throughout the day. Although during the early hours of the morning, the token was moving sideways between the $760 and $800 range, MKR broke its confined fluctuation at the first sight of daylight at around six o’clock. Thereafter, the token rose through the stages and reached a maximum of $929.65.

MKR/USDT 1-Day Trading Chart (Source: TradingView)

When looking at the chart above, it could be seen that MKR is nearing a Golden Cross. The 50-day MA (purple) is approaching the 200-day MA (orange) from below. If these two lines were to cross, a Golden Cross could happen and MKR could drastically rise. However, the RSI indicator reads 69.49 on its scale and is almost at the overbought region, hence, the market could correct the prices and MKR could drop.

In December 2021, both the 50-day MA and the 200-day MA came within close quarters, but they did not intersect, hence, the Golden Cross did not happen. When comparing the 2022 pseudo-Golden Cross approach and the present approach, there is one similarity that could be spotted. Notably, on both occasions, MKR hit the upper Bollinger band. Hence, could this be another pseudo-Golden Cross?

MKR/USDT 1-Day Trading Chart (Source: TradingView)

But, what if the golden cross actually happens? We will search for answers to this criteria by comparing the previous golden cross with the present. The build-up to the Golden Cross in August 2022 was quite drastic, however, the prices did not really get going even after the intersection of the two lines, as it touched the upper Bollinger band. In fact, there was a drop in prices and MKR resorted to assistance from the nearest support.

When considering the approach to the present golden cross, the build-up before the golden cross looks promising. Nonetheless, MKR has touched the upper Bollinger bands like the previous time, hence, the market could correct the prices. In the event of the market correcting the price, MKR could seek support close to $690-$700. If this happens, this would present an entry point for traders.

Moreover, widening Bollinger bands suggest that there could be more volatility in the market. As such, scalpers and intra-day traders should be vigilant to make the most when the opportunity presents itself.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post MKR Approaches Golden Cross, Is It Bogus Or Will It Intersect? appeared first on Coin Edition.

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