- Over the past seven days, MKR has risen 6.17%, defying current market odds.
- Due to increased whale activity, MKR’s buying pressure has pushed the price higher.
MakerDAO [MKR] has continued to rise over the past seven days despite market volatility. At the time of writing, MKR is up 2.01% in the past 24 hours.
MKR’s continued rise amid the crypto market’s downturn has led to speculation about the forces behind its development.
First, the increase is due to trading activity stimulated by smart money accumulation. In a post shared on IcryptoAI stated,
“$MKR topped the list of accumulations by Smart Money in the last 24 hours.”.
IcryptoAI further explained that,
“Currently the wallet contains 100.81 MKR ($256.86K). In addition, the wallet also contains 1.59K $DMT ($144.93K)”.
These whale activities and the continued market surge have caused several crypto analysts to speculate on MKR’s future market prospects.
Crypto analyst for example, @marktmaker predicts a rally towards $4k.
He added that
“Forming falling wedge and also testing horizontal resistance in case of falling Wegde + horizontal resistance) Breakout expects a sharp bullish rally towards $4000.”
These analysts base their prediction on the fact that Mkr has formed a perfect falling wedge in a daily time frame and is trying to clear it. So we will see a huge rally in the event of a successful breakout and retest.
What do the MKR fundamentals indicate?
At the time of writing, MKR reported a Money Flow Index (MFI) of 72. The MFI of 72 shows higher buying pressure, which is substantial in relation to selling activity. An MFI at this level is a bullish signal and shows that the uptrend could continue.
Source: Tradingview
Likewise, MKR has an RSI of 55 above its RSI-based MA of 45, indicating that a bullish market trend is well positioned to continue.
Cross RSI based MA from below shows strong upside momentum with increased buying pressure when the RSI rises.
Also, MKR’s positive Chaikin Money Flow (CMF) of 0.15 indicates higher buying pressure, resulting in accumulation. A positive CMF shows that buyers are dominant, which is a bullish signal and positive market sentiment.
Source: Tradingview
Looking further, AMBCrypto’s analysis of Santiment shows that the coin has an MVRV ratio of 38.42% at the time of writing.
The MVRV ratio at this level shows that holders enjoy a gain of 38.42% compared to the purchase price. So the market is healthy, with investors making profits without reaching extreme levels that could lead to a sharp correction.
Source: Santiment
Furthermore, our analysis indicates that MKR has experienced rising open interest per exchange. Over the past seven days, MKR’s per-exchange open interest has risen from a low of $45.8 million to a high of $61.48 million.
The increase in open interest per exchange implies more market activity and participation. The increased market activity shows confidence in MKR’s direction and stability, which is a bullish signal.
Source: Santiment
How far will Maker rise?
At the time of writing, MKR was trading at $2600.76, and the market outlook remains positive as indicated by several indicators such as CMF.
How much is 1,10,100 MKRs worth today?
MFI and RSI suggest that the bullish market will continue depending on the continuity of the current momentum. So, if the positive momentum continues, MKR could reach the next resistance level around $2738 and later reach the long-awaited $3000.
However, if the market experiences a correction, it will find support around $2503 and a further decline to $2403.