Maker DAO’s MKR has experienced a significant push amidst a slight uptick in the broader cryptocurrency market. Yesterday, the token saw a rise from a low of $1,265 to a high of $1,343, showcasing an impressive 5% 24-hour increase. While many tokens struggle to recover, MKR has managed to consolidate its upswing and maintain its upward trajectory. Currently trading at $1335, MKR appears to be on a path to conquer the critical resistance at $1,350. With buyers taking the lead, there is a possibility of further gains for MKR. The question remains: can this bullish momentum propel MKR to the $1,500 price mark?
Today, MKR stands at the forefront of top-gaining cryptocurrencies, surpassing Chainlink and Bitcoin Cash by 2%. This standout performance comes as the overall crypto market cap experiences a slight uptick of 0.63%, while trading volume declines by 4%, indicating a decrease in trading activity. However, against the sparse buying activities in the general market, MKR stands out with its 47% increase in trading volume. This surge in buying strength underlines the increasing interest in the Maker market. Exploring the factors behind this surge becomes crucial in understanding the potential for MKR’s price rally.
One significant factor contributing to the increased demand for MKR is the buzz around a new proposal to deploy the Spark Protocol on zkSync Era Mainnet. This proposal aims to include wETH, rETH, wstETH, and DAI as initial collaterals for borrowing on the Spark Protocol, setting a 2 million liquidity goal to encourage growth on zkSync. The Maker community has already unanimously voted in favor of launching Spark on Gnosis Chain, which makes DAI the native gas token of Gnosis Chain. This development also provides users with increased yield when lending their DAI tokens. The positive sentiment surrounding these developments has likely translated into higher demand for MKR, as it serves as the governance token of the Maker protocol.
Analyzing the daily chart, it is evident that MKR has formed two consecutive bullish candlesticks around the $1,300 price level. This formation suggests a high demand for the token and increased buying strength within this range. Moreover, MKR has successfully surpassed a key support level of $1,086 and a critical moving average of $1,166. However, the bulls encountered strong opposition at the $1,354 resistance level. Profit-taking traders have emerged, leading to the formation of two bearish candlesticks at this price, halting further progress.
Although MKR has remained slightly below $1,354 since the start of the trading session at $1,338, the Relative Strength Index (RSI) provides some positive signals. The RSI has increased from 63 to 64.97, approaching the overbought area. This uptick suggests a rise in buying strength, with more buyers entering longer positions to counter the selling pressure that currently resists further rally. If buyers maintain this momentum, there is a possibility of a breakout above $1,354 and a subsequent move towards the $1,500 mark by the end of the day.
Maker DAO’s MKR has shown impressive resilience and bullish momentum within the cryptocurrency market. Despite the broader market’s struggles, MKR has managed to consolidate its gains and attract increased buying activity. The proposal to deploy the Spark Protocol on zkSync Era Mainnet has boosted investor sentiment and contributed to the rising demand for MKR. While there are obstacles to overcome, such as the resistance at $1,354, the current indicators point towards the potential for MKR to reach $1,500 in the near future.