This is Why MKR Price Surge Might Not Stop Liquidations
The post This is Why MKR Price Surge Might Not Stop Liquidations appeared on BitcoinEthereumNews.com.
MKR, the governance token of MakerDAO, has witnessed a 10% price uptick over the past 24 hours. It’s currently trading at a weekly high of $1,224. The recent double-digit rally has led many futures traders to take long positions, expecting a continued price rise. However, this surge may fall short of countering the looming risk of liquidations. Here’s why. Maker Records Gains MKR has maintained a downward trend since July, when a death cross pattern was formed. This pattern is formed when an asset’s short-term moving average (50-day small moving average) crosses below a long-term moving average (200-day small moving average). The death cross serves as a bearish signal that reflects a shift in market sentiment from bullish to bearish and highlights weakening momentum in the asset’s price. Traders interpret this crossover as a sign of potential price decline, which has led MKR holders to increase their selling activity. Read More: What Are Tokenized Real-World Assets (RWA)? MKR Death Cross. Source: TradingView The altcoin’s price has declined 22% in the past month, placing MKR at a 13-month low. Key technical indicators suggest this downtrend may persist; for instance, its Bull Bear Power has remained sharply negative in recent weeks. This indicator measures market momentum by comparing the strength of buyers and sellers. A predominantly negative reading reflects weak buyer activity. It suggests buyers cannot push prices above recent highs, indicating a lack of demand or confidence in the market. MKR Bull Bear Power. Source: TradingView Long Traders Face Liquidation Risks MKR’s plummeting Open Interest reflects the lack of confidence. As of this writing, the token’s open interest stands at $81 million, witnessing a 12% decline since the beginning of the month. Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been…
Filed under: News - @ October 30, 2024 6:28 pm