Trade Recommendation: Maker (MKR)
Our April 25, 2019 trade recommendation for Maker (MKR/USD) hit its initial target. On May 27th, the market climbed as high as $767.27. Those who stuck to the trade plan grew their investments by over 43% in a little over a month.
Maker really tried to take out resistance of $750 for over a month from May 27th to July 9th. During that period, bulls tapped the resistance five times. Unfortunately, every single attempt ended in failure. With bears flexing their muscles, Maker went into a downward spiral as the price plunged as low as $450.65 on July 16th. The good news is that bulls quickly went to work.
Technical analysis shows that Maker is respecting support of $500. We have this view because even though bears took out this support on July 16th, bulls responded on July 17th and brought the market back above the support. The demand was so strong that the market is now trading at $579.48.
Nevertheless, we believe this rally will fade in the next few days and the price will stabilize around $500. Ideally, bulls will create a new base at this price area before ascending to our targets.
The strategy is to buy as close to $500 as possible. As long as the MKR/USD stays above this level, bulls will likely generate the momentum to rally to our targets of $625 and $750.
The process may take a month.
Daily Chart of Maker/US Dollar on Bitfinex
Summary of Strategy
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.
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