The crypto market is abuzz about the native token of Maker (MKR) as it aims for a breakout above a descending trendline because of traders’ interest in the coin, as per on-chain analytics and technical indicators. There is an overwhelming spike in investors’ confidence in the MKR token which has led to the traders positioning themselves for a potential surge.
On-chain analytics firm Coinglass reports a remarkable 37% increase in open interest (OI) over the past 24 hours, with an additional 16% spike in the last four hours. This substantial growth indicates heightened trader participation and growing enthusiasm surrounding the MKR token.
The token's Long/Short ratio currently stands at 1.08 which showcases a strong bullish sentiment among MKR traders. While 53% MKR traders are long-position holders, 47% are into short positions. This has resulted in a balanced market outlook for Maker one which is very optimistic.
Technical analysis reveals MKR has broken through a prolonged descending trendline, currently trading near a critical resistance level of $2,220. Analysts predict a potential 35% price surge if the token successfully closes above $2,230, potentially reaching $3,200 in the coming days.
Key technical indicators provide additional insights:
- The token is trading above its 200-day Exponential Moving Average (EMA), signaling an upward trend
- Relative Strength Index (RSI) indicates the asset is in overbought territory, suggesting a potential near-term price correction
Market performance metrics highlight the token's recent momentum:
- 24-hour price gain: Over 24%
- Trading volume surge: 180%
- Current trading price: Approximately $2,220
The combination of rising open interest, favorable Long/Short ratio, and breakthrough of technical resistance levels suggests that the MKR token is positioned for significant market movement. Investors and traders are closely monitoring these developments, anticipating potential short-term price appreciation.
However, the overbought RSI warns of a possible temporary pullback, advising traders to approach with strategic caution and implement robust risk management techniques. As the cryptocurrency market continues to evolve, Maker stands out as a token demonstrating substantial investor interest and technical strength.
At the time of publication, MKR was trading at $2289, up 2.66% in the last 24 hours while its trading volume declined 31.21% to touch $309.02 million and the market cap surged to hit $2.04 billion.