Maker (MKR) has been on a bullish trajectory over the last since June gaining as much as 150% to the current levels. This has surprised many traders, particularly in a market still reeling under the effects of the 2022 crypto market.
MKR has emerged as a top performer with an impressive 45% growth in the last 30 days. Maker price is up 5% on Thursday to $1,450, with its 24-hour trading volume surpassing the $120 million mark. It features among the top crypto gainers today, according to data from CoinMarketCap.
Bitcoin Cash (BCH) and Terra Classic (LUNC) led the top 100 cryptocurrencies in gains, rallying 8% and 6% over the last 24 hours. Pepe (PEPE) came in third after rising 5.5% on the day, and Chainlink (LINK) came in fourth with 5.22% gains over the same time frame. Compound (COMP) and XDC Network token (XDC) closed the top seven biggest gainers after climbing 24.55% and 3.86% respectively over the last 24 hours.
MKR bullishness has been maintained by the growing interest in interest-bearing stablecoins like DAI, issued by MakerDAO, especially in the decentralized financed (DeFi) sector.
In contrast to other stablecoins, DAI’s yields come from special sources and mechanisms such as the stability fee earned from Maker Vaults and other conventional assets like US Treasuries.
The shift to interest-bearing stablecoins has positively reinforced MakerDAO’s position in the DeFi sector.
In addition, partnerships and collaborations such as the deployment of the Spark Protocol on zkSync Era Mainnet, have also kept MKR investors interested. Spark Protocol’s primary purpose is to improve liquidity and support the ecosystem’s growth.
Spark Protocol features popular DeFi digital assets such as wETH, wstETH, rETH, and DAI as initial collaterals. Following the launch, the team set “a 2 million DAI liquidity goal to kickstart Spark’s growth on zkSync.
In case you missed it:
A new proposal has been put forth to deploy @spark_protocol on zkSync Era Mainnet.
It includes wETH, rETH, wstETH, and DAI as initial collaterals and setting a 2 million DAI liquidity goal to kickstart Spark’s growth on zkSync.
→ https://t.co/D4XX8VlP0B— Maker (@MakerDAO) September 21, 2023
Maker Price Analysis: Will MKR Continue Rising?
Maker bulls appear determined to defend the uptrend they have nurtured since June. The most significant breakout took place in early July after Maker stepped above a tough resistance zone between $650 and $680, which was created by the 50-day Simple Moving Average (SMA) (yellow), the 100-day SMA (blue), the 200-day SMA (purple), and the lower descending trendline (dotted).
Maker also pushed above the supplier congestion zone stretching from $1,234 and $1,393 before exploding into a rally, hitting highs around $1,532 on Sept. 27.
All the major moving averages have played a leading role in Maker’s rally, assuring that bulls have control and the path with the least resistance is to the upside.
MKR/USD Daily Chart
Most technical indicators support a continued uptrend for MKR, including a call to investors to buy the token from the Moving Average Convergence Divergence (MACD). This occurred on Aug. 31 when the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA. This bullish cross was still in play, suggesting that the market conditions still favored the upside.
In addition, the Relative Strength Index (RSI) is currently in the positive region at 73. This suggests that the price is firmly under the control of the buyers.
As such, a decisive daily candlestick close above the $1,500 psychological level would open the door to an extended uptrend, where Maker deals with resistance between $1,800 and $2,000.
If bulls manage to bring down this hurdle, investors will start acclimatizing to gains, targeting highs above $2,500. This would represent a 70% ascent from the current price.
On the downside, traders must tread cautiously considering the Relative Strength Index (RSI) is currently in the overbought region. If Maker’s upward momentum loses steam at this level, it would be forced to retrace in search of fresh liquidity before resuming the uptrend.
Key support areas lie at $1,250 coinciding with the upper trendline and the the 50-day SMA at $1,179, the 100-day SMA at 1,089, and the 200-day SMA at $885. Price movement below $800 could trigger a massive sell-off as MKR holders will likely start panic selling.
Source: https://www.analyticsinsight.net/maker-price-prediction-mkr-rises-5-is-the-market-eying-its-potential/