Maker [MKR] threatens a push lower, can $750 stave off bears’ efforts

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

MakerDAO’s token MKR formed a series of lower highs on the price charts in recent days. This was indicative of a downtrend in progress, and the technical indicators also agreed. However, the price also sat atop a level of support.

Bitcoin also traded just above a region of support at the time of writing. Can the bulls win the staring contest or will the bears impose their will on the market yet again?

Source: MKR/USDT on TradingView

The four-hour chart showed MKR to trade within a descending channel (yellow) over the past two weeks. The $800 region and the $760 region were marked in red to be significant short-term regions. The past few days of trading saw both of these zones tested as a zone of supply.

To the south, the $724 level was a place where MKR could see a minor bounce. However, there was a lot of volatility in this region in June. Hence, the $700-$720 area can be expected to act as a demand zone once more.

The Relative Strength Index (RSI) dipped to 41 to show mounting bearish momentum. The On-Balance Volume (OBV) has been in a pronounced downtrend, and clearly highlighted the lack of buying pressure.

Source: MKR/USDT on TradingView

A set of Fibonacci retracement levels (yellow) were plotted based on MKR’s drop from $838 to $728. The 78.6% retracement level lay at $814 and has acted as resistance. Many of the other retracement levels have also been respected by the price action.

At the time of writing, the $770 mark served as strong resistance, and the bulls were fighting to maintain MKR above the $754 level.

The A/D indicator, like the OBV, has been in a strong downtrend