Maker

Long

View

Gains

<ul class="wp-block-list">
 <li>MKR surged 10% to $1,224 but faces risks from potential long liquidations.</li>  
 <li>A death cross pattern signals ongoing bearish sentiment and declining buyer confidence.</li>  
 <li>Sustained buying pressure is needed for MKR to break the $1,683 resistance level.</li> 
</ul>  
<p><a href="https://cryptonewsland.com/copy-smart-traders-by-investing-in-etfswap-etfs-cardano-ada-and-maker-mkr/" rel="noopener noreferrer nofollow">MakerDAO (MKR)</a>, recently jumped 10% in just 24 hours. This surge brought the token to a weekly high of $1,224. However, beneath this rally lies a potential risk of long liquidations that could disrupt momentum. Traders now stand at a crucial crossroads. Will MKR keep rising, or will market volatility pull prices down?</p>  
<h2 class="wp-block-heading" id="h-maker-records-gains">Maker Records Gains</h2>  
<figure class="wp-block-image size-large"><img src="https://cryptonewsland.com/wp-content/uploads/2024/10/Screenshot_20241030-232148-1024x461.png" alt="" class="wp-image-189618">
</figure>  
<p>Source: Trading View Since July, <a href="https://makerdao.com/" rel="noopener noreferrer nofollow">MKR</a> has struggled, marked by a death cross pattern. This occurs when a short-term moving average falls below a long-term moving average. Traders see this as a bearish signal, indicating a shift in sentiment and fading momentum. Many holders have chosen to sell, fearing further declines.</p>  
<p>In the past month, the altcoin's price dropped 22%, reaching a 13-month low. Key technical indicators suggest this downtrend may continue. The Bull Bear Power metric remains sharply negative, measuring market momentum by comparing the strengths of buyers and sellers. A negative reading signals weak buyer activity and a lack of confidence among traders.</p>  
<h2 class="wp-block-heading" id="h-long-traders-face-liquidation-risks">Long Traders Face Liquidation Risks</h2>  
<p>MKR's decreasing <a href="https://www.cmegroup.com/education/courses/introduction-to-futures/open-interest.html" rel="noopener noreferrer nofollow">open interest</a> highlights market uncertainty. Currently, open interest sits at $81 million, down 12% since the beginning of the month. Open interest tracks unsettled derivative contracts. A decline usually points to reduced market participation as traders close positions to realize profits or cut losses.</p>  
<p>Despite the drop in price, many futures traders still chase long positions. Positive funding rates, at 0.014%, indicate this trend. According to Coinglass, the MKR long/short ratio hit a monthly high, with long positions making up nearly 50% of the volume. In just 24 hours, long volume reached an astonishing $42.07 billion.</p>  
<p>This situation often suggests <a href="https://cryptonewsland.com/mkr-price-surges-by-40-on-asxn/" rel="noopener noreferrer nofollow">bullish sentiment</a>, but the imbalance between long and short positions creates risks. With ongoing bearish sentiment around MKR, long positions face the threat of liquidation. Currently trading at $1,224, MKR bounced back from a support level of $1,032. Fibonacci retracement levels suggest a potential target of $1,683 as a critical resistance point.</p>  
<p>To break through this level, MKR requires sustained buying pressure. If successful, the altcoin could soar past $2,000 for the first time since August. However, if bearish sentiment returns, MKR risks losing recent gains and could drop back to the support level of $1,032. This scenario raises concerns about the durability of MKR's upward momentum.</p>   
<p>The post <a href="https://cryptonewsland.com/will-long-liquidations-halt-mkrs-momentum/" rel="noopener noreferrer nofollow">Maker Climbs 10%, Will Long Liquidations Halt MKR’s Momentum?</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Maker Climbs 10%, Will Long Liquidations Halt MKR’s Momentum?

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