Maker (MKR) Price Spikes 23%: 3 Reasons a Move Toward $2,500 Could Be Next
Key Takeaways
- MKR price climbs above $1,600, driven by rising demand for the token and a proposal to boost lending limits.
- The IOMAP shows no significant resistance between $1,683 and $1,939, indicating that MKR might continue to rise.
- Buying pressure around the token has increased, with a bullish pattern predicting an additional 50% increase.
- Interested in buying or selling MAKERDAO MKR coin? Read our review of the best exchanges to buy and sell MAKERDAO MKR.
MKR, the governance token of the Ethereum-based lending protocol Maker, is one of today’s top gainers. In the last 24 hours, MKR’s price has increased by 23%.
This surge makes cryptocurrency the second-best-performing asset out of the top, with only Story (IP) ahead of it. According to CCN’s findings, the price rise happened due to rising demand for the token.
But beyond that, an unanticipated proposal contributed to the sustained hike.
Following this development, on-chain data and technical indicators reveal that the MKR price rally might not be over.
Proposal Boosts MKR Demand Amid Strong Support
Earlier in the month, MKR’s price declined below $900. This happened days after the Donald Trump trade wars began, following in the same direction as the broader market.
While many altcoins struggled to recover, the MakerDAO governance token quickly strengthened. By Feb. 20, MKR had surged past $1,400.
Meanwhile, the double-digit surge in the last 24 hours was driven by an emergency proposal to increase the lending limit for MKR holders. With the proposal nearing approval, demand for the altcoin could keep rising, which could positively impact the token’s value.
Zooming into MKR’s position on-chain, the In/Out of Money reveals that the price increase will likely continue. The IOMAP uses the volume in unrealized loss or profit to spot support and resistance.
The higher the volume of profits, the stronger the support. Likewise, the higher the volume of losses, the stronger the resistance.
IntoTheBlock data shows that MKR’s key support level is around $1,506, where 2,870 addresses accumulated nearly 123,000 tokens. This surpasses the combined volume of tokens bought between $1,683 and $1,939.
Given this strong support, MKR will unlikely face significant selling pressure, increasing its chances of climbing toward $2,000.
MKR Token Gets the Spotlight
Amid this potential, Santiment data reveals that social dominance around the Maker project has increased.
Social dominance measures the level of discussion related to an asset compared to others in the top 100.
When it decreases, the broader market is paying less attention, which is a bearish sign.
However, in this case, the spike indicates a rising level of conversations related to MKR.
If the reading continues to rise, MKR’s price might sustain its uptrend.
MKR Price to Add Another 50%?
From a technical perspective, MKR’s price rose to $1,683 after it broke out of a falling wedge. Between Dec. 3 and Feb. 14, a falling wedge appeared as the altcoin’s value dropped from $2,315 to $897.
A falling wedge is a bullish reversal and continuation pattern that appears during a downtrend. It forms as support and resistance lines converge downward, indicating a potential breakout to the upside.
As seen below, MKR validated the bullish trend after the price rose above the resistance at $1,009. However, based on the positions of the Money Flow Index (MFI) and Chaikin Money Flow (CMF), the uptrend seems not over.
On the daily chart, both the MFI and CMF have broken above the neutral line. This indicates rising buying pressure around the cryptocurrency.
If bulls sustain this momentum, MKR’s price might rise to the 0.236 Fibonacci level at $2,576. This represents a more than 50% increase from the current price.
On the other hand, if buying pressure fails to intensify, this might not happen. Instead, MKR’s price might be below the 0.786 Fib level at $1,290 instead.
Maker (MKR) Breaks Resistance, Bullish Trend Emerging but Faces $2,000 Hurdle
