MakerDAO Technical Analysis: MKR/USD consolidation still in play, down 17% since the peak

• Maker is under a healthy consolidation considering the magnitude of the bull move.
• MKR/USD remains in a strong daily uptrend and the daily 12-EMA is still far away.

Despite the recent 17% pullback by MKR, the daily uptrend is still intact and it’s at no risk of being lost. The bulls will look at the daily 12-EMA for support. MKR is trading at $600 at the time of writing, fighting to defend this level. The RSI has cooled off a little but it’s still high.

MKR/USD daily chart

The 12-EMA is set at $550 which means that bulls still have around $50 of space to work with. The consolidation is definitely strong but considering the overall picture, it’s still healthy. The last time MKR pulled back was on May 31 after a huge bull move. MKR dropped 25% before returning to its bullish path, the bulls managed to defend the 12-EMA and continued from there. 

Something similar seems to be happening now although the 12-EMA is still far away. The MACD remains extremely bullish. 

MKR/USD 4-hour chart

MKR has lost its 4-hour uptrend and the 12-EMA as well as the 26-EMA. Both EMAs are getting close to a bear cross and the RSI is at its midpoint. A 4-hour downtrend is not enough for bulls to be concerned as the daily uptrend is really strong.