The Maker (MKR) token has experienced a significant rally of over 44% in the past week, defying market trends and maintaining a steady upward momentum. Despite large wallet investors and whales taking profits during this surge, on-chain and technical indicators suggest that Maker is poised for further gains.
Derivatives data from Coinglass indicates a substantial increase in Open Interest in MKR on February 21, with the total value reaching $116.85 million. Additionally, the total value of assets locked in MKR has surged to $5.675 billion, signaling growing demand and relevance for the token.
On-chain analysis from Santiment shows a series of negative spikes in Network realized profit/loss metric, indicating that traders and MKR holders are shedding their holdings and realizing losses. However, this trend is often a sign of capitulation and can precede a recovery in the token’s price.
The In/Out of money around price indicator on IntoTheBlock reveals that 30% of wallet addresses holding MKR are currently at unrealized losses, while 65.55% have unrealized gains. Combining this data with the Network realized profit/loss metric suggests that further selling pressure on MKR is unlikely in the near future.
Technical indicators, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), point towards a bullish outlook for MKR on the daily timeframe. A breakout above resistance levels at $1,632 and $2,050 could lead to a 15% rally in the token’s price.
Despite drama surrounding potential governance attacks on the Sky Protocol (Maker DAO), the token continues to rally. Additionally, a $17 million token burn was identified on the blockchain, reducing selling pressure and supporting price gains.
At the time of writing, MKR is trading at $1,432 on Friday, with the potential for further gains in the coming week. It is important to note that this article does not constitute investment advice and is for educational purposes only.