Maker Price Rally Seems Unstopable Above $1,500

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Maker (MKR) is winning on the charts and in the decentralized finance (DeFi) sector. The strides MakerDAO, the issuer of the MKR token and the DAI stablecoin, has been making in DeFi are bearing fruits for investors who have patiently endured the crypto winter.

Over the last 24 hours, Maker’s price surged 8% to $1,515, with $120 million in trading volume streaming in supported by $1.3 billion in market capitalization to rank #33 among other cryptos.

Maker Price Skyrockets in Bear Market

The maker has been upward since June following the support establishment at $580. Bulls took the reins entirely after MKR dispersed the seller congestion at $680. This confluence area, which had brought together a multi-month descending trendline, the 50-day Exponential Moving Average (EMA) (red), and the 100-day EMA (blue) marked the turning pointing into what would later become a significant rally.

Trading above all the above moving averages, including the 200-day EMA (purple) reduced the sellers’ influence, leaving Maker’s price on a resistance-free uptrend to $1,250. As expected, profit-booking activities and a market-wide sell-off in early August culminated in a correction to $950. The 100-day EMA absorbed the selling pressure, giving bulls another opportunity to regain control and reclaim support at $1,250.

Maker’s rally this week took off after stepping above the second multi-month trendline, characterized by a spike in trading volumes due to growing interest from traders who find MKR tradeable compared to prominent cryptos like Bitcoin and Ethereum – currently moving sideways.

maker price chart — MKR/USD daily chart: Tradingview

With the resistance at $1,500 turned into immediate support, Maker’s rally is bound to continue. The next significant rendezvous for the bulls is the $2,000 level but with the ability to spread their wings to $2,500.

From a macro perspective, bulls are influential at the moment. For instance, the Direction Movement Index (DMI) shows that the uptrend is still steady. Traders look out for the blue +DI to cross above the -DI line, thus validating the bullish outlook. When the +DI line changes direction downwards and the -DI upwards, the indicator signals that the uptrend has weakened and a trend reversal is nigh.

For now, all eyes are on two levels: the immediate resistance at $1,600, which might allow buyers to elevate Maker higher toward $2,000 if weakened. The second level is the immediate support at $1,500. Resting this support will confirm that selling pressure is minimal and that bulls can push for more gains.

What’s Driving Maker’s Rally?

Santiment, an on-chain analytics platform, has revealed key insights that might help traders understand Maker’s price rally, starting with a remarkable surge in the number of active addresses on the protocol. According to the chart below, addresses interacting with MKR on-chain have increased to 650, hitting a 10-week high to support the token’s gains above $1,500.

📈 #Maker's price has now surged +40% in the past 16 days with its active addresses hitting a 10-week high in tandem with the asset crossing $1,500. An inflow of $MKR moving to exchanges is something to be cautious of for at least a temporary local top. https://t.co/oFeijYNZCO pic.twitter.com/rStBGX6TdM

— Santiment (@santimentfeed) September 28, 2023

However, Santiment warns that there has also been a noticeable increase in the inflow volume of MKR to exchanges. “An inflow of $MKR moving to exchanges is something to be cautious of for at least a temporary local top,” Santiment analysts wrote on X.

MakerDAO’s contribution to the DeFi sector, mainly focusing on real-world assets (WRAs), can also support the token’s positive outlook. The decentralized autonomous organization believes that the RWA segment has great potential in the Web3 industry.

On Wednesday, Chinese blockchain reporter Wu Blockchain shared more information confirming MakerDAO’s heavy involvement in asset tokenization, having increased investment in WRAs for the seventh time in September.

After adding $101 million in WRA assets, MakerDAO currently has over $3.1 billion invested in the segment.

MakerDAO once again added $101 million in RWA assets in the past 24 hours through Monetalis Clydesdale, BlockTower Andromeda, and New Silver. This is the seventh increase this month. Currently, the total RWA assets in MakerDAO have exceeded US$3.1 billion. https://t.co/Olej0fYTRB

— Wu Blockchain (@WuBlockchain) September 27, 2023

Demand for WRAs in the Web3 industry is rising, and MakerDAO wants to be at the forefront as a key facilitator. The focus on the segment also allows the network to achieve higher utility and value. WRAs also allow MakerDAO to achieve its goal of providing access to assets or their equivalent digital value, especially for assets with limited access.

MakerDAO Alternative To Consider – Memes Kombat

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