Maker (MKR), a pivotal Ethereum-based token essential for governing the Maker protocol and DAI stablecoins, has witnessed a notable surge in value. Over the past 39 days, it has experienced a robust ascent of over 44 percent, marking its value at around $1,492 in the early phases of the Asian market. This increase in value is largely attributed to the scarce availability, with a supply of about 1 million tokens and an elevated demand stimulated by the global acceptance of DAI stablecoins.
Besides its scarce availability, the widespread adoption of DAI stablecoins has substantially fueled demand for Maker. However, the market intelligence platform Santiment suggests traders tread cautiously amid the ongoing relief rally in Maker. Moreover, there has been a discernible rise in activity, with approximately 5,090 MKR tokens, equivalent to about $7.6 million, transferred to centralized exchanges from self-custodial wallets. This surge in exchange deposits might be indicative of an impending market reversal.
In the preceding weeks, Santiment has also highlighted a remarkable increase in daily active addresses related to MKR, amounting to around 651 addresses, a peak value in over two months. Additionally, this surge in daily active addresses aligns with MKR’s price rally, exceeding the $1,500 threshold for the first time since May 2022, hinting at the commencement of a macro bull rally.
📈 #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
At the time of reporting, Maker was demonstrating bullish sentiments, trading at $1,513.73, reflecting a price surge of over 6%. The trading volume of MKR also saw a slight uptick of 0.13% to $121,092,143. This suggests that the prevailing bullish sentiment in the MKR market will likely persist in the forthcoming hours.
The broadening of the Bollinger Bands (BB) suggests that MKR is experiencing increased volatility. This indicates that the price of MKR is fluctuating more widely than usual, potentially presenting opportunities for traders to capitalize on price movements.
The RSI indicator is also moving above its signal line, with readings of 76.27 on the RSI line indicating strong bullish momentum. This suggests that the current uptrend in the market is likely to continue, and traders may consider entering long positions to take advantage of the upward movement.
The moving Average Convergence Divergence (MACD) indicator shows strong bullish momentum in the MKR market, where the MACD line is moving above its SMA, suggesting that the current bullish sentiment might continue in the market in the hours ahead. The formation of the trajectory histogram on the positive further indicates the current bullish sentiment in the MKR market in the hours ahead.
Maker (MKR) continues to exhibit bullish tendencies, reinforced by key market indicators such as the RSI and MACD. While the expanding Bollinger Bands signal heightened volatility, the overall sentiment remains positive, suggesting potential growth for MKR in the near future.
