These are the liquidity pockets that MakerDAO traders can bet on

Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

MKR tokens from the MakerDAO provided a short-term buying opportunity. While last month’s price action resembled that of a range, it’s possible that recent demand behind MKR could drive prices up. In the north, the $2200 and $2350 would likely be under pressure to sell.

MKR-1H

Source: MKR/USDT on TradingView

The Volume Profile Visible Range provided an interesting insight into MKR trading activity over the past two weeks. It showed the Point of Control to be at $2005, representing the area where the price has been most traded since Feb. 10.

In the north, the $2120 band was also an interesting place, while in the south, the $1900 level converged from a Fibonacci retracement level, a longer-term support level of $1928, and the VPVR tool itself.

Therefore, while MKR has been trading for the most part in the range of $2300 to $1650 in the past month, the short-term market structure flipped to bullish as the $1850 level broke.

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Source: MKR/USDT on TradingView

The RSI stayed above the neutral 50 showing that bullish momentum was still a factor. In addition, it formed a hidden bullish divergence, which usually occurs when a coin is in an uptrend and has seen a pullback. A hidden bullish divergence can be used to drive the next wave north.

The MACD formed a bearish crossover above the zero line in response to the $2075 pullback, while the CDV showed high buying volume in recent days. This was encouraging for the bulls, as it showed that the buyers have indeed taken the wheel of MKR, at least for a short time.

Conclusion

The evidence for demand and the difference in the hourly timeframe, coupled with the VPVR, showed that the ongoing slump could present a short-term buying opportunity. As always, Bitcoin can have an impact on MKR. Purchases for $2000 and $1900 can sell for $2200-$2250 in the coming days.

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