Maker Token Retreats After Surge, Resistance Looms

Maker (MKR) has been experiencing a significant retracement in the current market downturn, demonstrating remarkable strength. Although it appeared robust today, the token is now encountering resistance. A rejection at this level could potentially trigger a fresh selling phase.

The broader market outlook remains bearish in the mid-term, but MKR is currently undergoing a retracement after posting substantial gains in the past hours. This retracement followed a test of $778 during the early-month crash. The price is now seeking a crucial retest level to initiate another drop, as it faces resistance at its current trading level. A notable surge above this level could propel the price above the $1,200 mark.

However, if MKR fails to push higher, it could signal the end of the retracement phase and trigger a fresh drop, leading to another lower-low movement. A stronghold above the monthly low could potentially reignite buying pressure. While this week's surge is characterized by a strong bullish candle, we can expect a major recovery before resuming a bearish impulsive move. As demand for MKR increases, we can anticipate more surges until the price reaches an exhaustion point. Despite the bears taking a break, MKR leads the top gainers chart today with an 11% surge in the last 24 hours.

Key levels to watch include the close resistance at $1,275 for a test, followed by higher levels at $1,477 and $1,636. A continuous push could lead to a trend reversal. The latest surge is currently supported by $980. If the bears reemerge and cause a drop below this price level, the market may roll back to $875 and $778. A dip below the latter level would confirm the expansion of the bearish move.

At the time of writing, the spot price of MKR is $1,120, with a bearish trend and high volatility. It is essential to conduct thorough research before making any trading or investment decisions in the cryptocurrency market.