Market Experiences Notable 17% Uptick: Examining the Root Causes of MKR's Rise
Let's break down the MKR surge
Maker [MKR] experienced a whopping 17% surge in the past 24 hours, making it one of the top performers on the market. This astronomical jump was mainly instigated by the Futures market.
Futures traders have been aggressive, piling on long positions, pushing the MKR price higher. At the moment, an analysis of Open Interest (OI) Weighted Funding Rate reveals a positive reading of 0.0170%, the third-highest level this year. This figure indicates most open contracts on MKR are from long traders,, who are actually paying a premium to keep their positions.
However, while Futures traders led the bull charge, spot traders sold over $1 million worth of MKR during the same period. This substantial sell-off suggests either profit-taking or attempts to cut losses, keeping an eye on potential downside risks.
Now, the question is: Is this rally sustainable? Let's explore the technical indicators.
Technical Insights
On the daily chart, MKR has flipped its recent high of $1,962 into support. Given the current momentum's wane and the ongoing selling on the spot side, a retest of this zone might be next.
However, if MKR manages to hold above this trendline, the structure remains intact, and a bounce from $1,962 or $1,867 could lead to another move toward $2,400.
Looking at the Bollinger Bands, MKR's recent move into the upper band (red) suggests a potential price pullback either toward the middle band (blue) or the lower support band (green). These levels typically provide strong support, allowing for price recovery and the formation of higher highs.
With a decline appearing imminent, our analysis shows a rebound from the middle band is highly likely due to improving liquidity flow in the market. The Money Flow Index (MFI) has risen to 66.62, demonstrating healthy liquidity inflows, keeping MKR within a bullish liquidity zone.
In conclusion, MKR's recent performance and technical indicators suggest it may hold above $2,000 and push toward $2,400. However, a retest of support is possible if bullish momentum wanes. As long as the MKRprice remains above support on key timeframes, the bias remains upward.
[1] - https://www.coingecko.com/en/coins/maker[2] - https://coinpriceforecast.com/price-predictions/maker[3] - https://www.omniply.io/trending/mkr[4] - https://coingape.com/trending/makers-price-could-surge-40-within-two-weeks-heres-why/
- The surge in MKR price has ignited interest in other cryptocurrencies, with prominent names like Bitcoin (BTC), Ethereum (ETH), and Altcoins attracting increased attention in the finance and investing world.
- As institutional investors and traders look to diversify their portfolios, they are closely monitoring the performance of crypto assets such as BTC and ETH, while also keeping a close eye on promising Altcoins such as MKR.
- With the crypto market on the rise, analysts and investors are now focusing on new opportunities for growth, including potential contributions from alternative financial technologies in areas like decentralized finance (DeFi). This renewed focus comes as MKR demonstrates its resilience and potential for continued growth.
