Trade Recommendation: Maker (MKR)
Our July 20, 2019 trade recommendation for Maker (MKR/USD) hit its initial target. On July 29th, the market climbed as high as $719.99. Those who stuck to the trade plan grew their investments by over 32% in less than two weeks.
Unfortunately, Maker quickly succumbed to profit-taking after hitting our initial price target. Also, sellers managed to drive the price below our range midpoint of $625. As a result, the crypto token took on a bearish sentiment and plunged to as low as $428.12 on August 15th.
The good news is that bulls quickly bought this dip and lifted the market above support of $500. The price action tells us that Maker is a solid bottom-picking selection.
Technical analysis shows that Maker is respecting support of $500. We have this view because even though bears briefly pierced the support on August 12th, bulls came to the rescue and scooped up positions. This indicates that the move below the support is a bear trap. The false break could be the fuel that ignites a rally to our price targets.
Also, the daily RSI is printing a bullish divergence. The signal reveals that momentum is swinging to the side of the bulls. This is an indication that a trend reversal is on the horizon.
The strategy is to buy at the current price. As long as the MKR/USD doesn’t fall too far below $500, bulls will likely attract more bottom pickers and generate the momentum to climb to our targets of $625 and $750.
The process may take a month.
Daily Chart of Maker/US Dollar on Bitfinex
Summary of Strategy
Buy: Current price of $498.42.
Target: $625 first and then $750.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.