Maker price today: $1,270
- Maker could rise by nearly 40% to $1,721 if it breaks above the upper boundary of a falling wedge pattern.
- The DeFi token has to overcome several key hurdles to achieve the 40% target.
- MKR's on-chain metrics support the bullish outlook, but rising exchange reserves pose risk.
MakerDAO (MKR) is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
MKR's rally is dependent on breakout above key trendline
MakerDAO, the protocol behind the DAI stablecoin, has seen nearly a 10% gain in the past week as it is looking to break out of a four-month decline that saw its price reaching lows last seen in August 2023.
MKR's price seems to have bottomed, and it's looking to test the upper boundary of a falling wedge pattern. A falling wedge pattern is a bullish formation that signifies a potential price reversal during a downtrend. It occurs when the downtrend gradually loses momentum over time.
MKR/USDT daily chart
In MKR's case, a breakout above the upper trendline near $1,450 could see the DeFi token rally nearly 40% to $1,721 in the next few weeks, especially as bullish pressure is also rising in the general crypto market.
To complete such a move, MKR would have to overcome the key resistance level around $1,441. Notably, the 50-day, 100-day and 200-day Simple Moving Averages (SMA) converge with key resistance levels on the daily chart.
The Relative Strength Index (RSI) momentum indicator and its SMA are testing their midline and descending trendline, respectively. A cross above both lines could strengthen the bullish momentum.
The Awesome Oscillator (AO) has posted a series of declining green bars below its midline, signaling a weakening bearish momentum.
On the flip side, a daily candlestick close below the support near the $1,000 psychological level will invalidate the bullish thesis.
Maker's on-chain metrics show rising revenue amid other mixed signals
MKR's Market Value to Realized Value (MVRV) Ratio, which measures all holders' average profit and loss, is at -25%, per Santiment data. This indicates that all MRK investors are at an average loss of 25%. However, the MVRV seems to have bottomed on October 23.
MKR MVRV Ratio
DefiLlama data also shows that MKR's revenue has been trending upward again, rising by 75% since August 28.
However, investors need to be cautious of a potential price impact from MKR's exchange flows, which have been trending upward in the past three weeks, per CryptoQuant’s data. Increasing exchange reserves could lead to high selling pressure on a token.
MKR Exchange Reserve
Meanwhile, MakerDAO's community is considering dropping the SKY brand name after spending about $25 million to rebrand its governance token and products. The protocol will organize a governance poll on November 4 to decide whether to keep the Sky name or revert to Maker.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin, XRP and Ethereum dip slightly amidst fear of market-wide correction
Bitcoin holds steady above $72,000 on Thursday, notes a slight decline on the day. Ethereum loses less than 1% of its value, trades above $2,600. XRP trades above $0.51, down less than 1% on the day.
Solana Price Forecast: SOL risks decline as volume in decentralized exchanges drops sharply
Solana price is nearly unchanged on Thursday after declining on Wednesday, putting an end to a four-day streak of gains. The altcoin rallied alongside Bitcoin (BTC) as the largest cryptocurrency chased its previous all-time high of $73,777.
Bitcoin Price Forecast: Rally stalls as traders opt to take profits
Bitcoin (BTC) trades broadly stable around $72,000 on Thursday after a four-day rally. However, institutional demand remains robust, as evidenced by the over $896 million in inflows into US spot Bitcoin ETFs on Wednesday.
Chainlink rally stalls as effect from “Runtime Environment” upgrade wanes
Chainlink falls after a three-day rally, which was partially driven by the Chainlink Runtime Environment (CRE) at SmartCon on Wednesday. This enhancement is crucial for expanding Chainlink to thousands of blockchains and meeting the growing demand from capital markets and Web3.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.