Maker cryptocurrency investors have cause for celebration. After more than a year of losses, traders are finally above water with their investments in Maker (MKR). This uptick in value is largely attributed to the 13% increase in Maker supply on exchanges.
This surge in supply indicates that more investors are confident enough to invest their capital into MKR, which creates notable demand. Sanbase data reveals that the number of MKR tokens located on exchanges has climbed substantially since December 30, 2022 – a staggering 13%.
At the moment, 8.63% of all available MKR is held by crypto exchanges, whereas previously, this was only 7%. A massive surge in interest for this token has been observed throughout 2021, and it’s showing no signs of slowing down.
In turn, this increased buy pressure has resulted in a steady increase in the price of Maker since mid-2021. As of March 3, 2023, the token is trading at $921.26, a significant uptick from its previous low of $839.59 per token.
Generally, when there is more cryptocurrency available for trading on exchanges, it implies that the said currency is retained by such exchanges. This happens as investors become keener to offload their tokens rather than keep them. As this increases selling pressure and causes a decline in asset prices.
MKR/USD 1-day and 4-hour Technical Analysis
Maker price movement in the past 30 days shows an uptick of over 42% and is currently trading above the 200-day moving average (MA). This is a positive sign for Maker’s future performance, as the 200-day MA acts as a strong support level.
Over the past two months, MKR’s availability on exchanges has experienced a power surge. Similarly, its cost rose in tandem. As per CoinMarketCap data, MKR’s worth has been up by 75% since this year began. Even when the rest of the market was stagnating last month, MKR shot up by over 40%.
The one-day technical chart reveals that MKR is currently trading above its 23.6% Fibonacci retracement level and below its 61.8% Fibonacci retracement level (at the time of writing). This suggests that MKR is in a bullish trend and could continue rising in the near future.
The Average True Range (ATR) value of the coin, which helps measure volatility in the market, is currently at 1.75. This suggests that MKR’s price could continue to move within a range in the short term.
Looking at the momentum indicators, the Relative Strength Index (RSI) is currently at 58.8, which suggests that MKR may not be overbought or oversold. The Moving Average Convergence Divergence (MACD) line is also above its signal line, indicating a bullish trend in the short term.
The 4-hour chart also reveals that MKR/USD is trading above its 21-period moving average, indicating further bullish sentiment. Additionally, the Relative Strength Index is currently at 54.96 and slowly increasing, which is a sign that MKR’s price is likely to continue rising.
Taken together, the 13% increase in Maker supply on exchanges and the technical analysis of both the one-day and four-hour charts suggest that MKR is currently trending in a positive direction and will likely see further price increases in the future.
