Recently, the cryptocurrency MKR experienced a drop, landing in an H12 bullish zone just above the psychological threshold of $1400. This zone coincides with a high liquidation area, indicating a potential reversal. Concurrently, Bitcoin (BTC), the reigning king of cryptocurrencies, recorded a loss exceeding $1000, struggling to maintain the $34.0k level. This loss led to a significant pullback for MKR from $1651 to a bullish order block (OB) at $1430, a 12% decrease.
MKR’s Potential for Recovery
At the time of writing, the pullback had reached the H12 bullish OB of $1413 – $1444 (cyan). This bullish zone is slightly above the pivotal $1403 support, which could offer resistance to bearish movements. If sellers withdraw from this area, a bullish reversal could be on the horizon. However, for this to occur, MKR bulls need to overcome the $1481 resistance to reach the overhead roadblock and H12 bearish OB below $1600.
The RSI has dipped below 50, indicating increased selling pressure. This, combined with significant capital outflows as suggested by the downward trending CMF, demonstrates that sellers currently have the upper hand. Major liquidation levels have been identified below $1550 and $1450.
What Does the Future Hold for MKR?
Data from Hyblock provides further insight into potential MKR price trajectories. The Liquidation Heatmap indicates that the orange areas below $1450 and $1550 are major liquidation zones. Typically, prices react strongly at these zones, posing significant risk for leveraged traders. Therefore, it is plausible that MKR’s price may dip below $1450 before attempting to breach the $1550 mark.
Given that the $1450 mark is within the H12 bullish zone, MKR prices could respond positively to the bullish zone, particularly if BTC does not suffer further losses. Thus, a bullish reversal at the H12 bullish zone is conceivable, assuming a liquidity hunt pans out as projected. Conversely, further BTC losses could push MKR towards $1350.
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