MKR is up 11.52% in the past week
Analysts predict MKR could rise given key buy signal
The cryptocurrency market has seen a notable recovery on the charts over the past week. Although Maker [MKR] has been lagging behind, the gains over the past few days have outweighed the weekly losses. In fact, at the time of writing, MKR is trading at $1,683. This marks an 11.52% gain over the past week.
Previously, Maker had been in a downward trend, with a cumulative drop of 6.68% on the monthly chart.
However, despite the recent gains, Maker’s price remains well below its recent high of $3,125 set in July. Furthermore, it is still down about 72.2% from its high of $6,391.
Therefore, recent market conditions have analysts discussing what is driving its latest surge. One such analyst is Ali Martinez, who claims that MKR’s performance in the RWA space is key to its surge. In doing so, he cited the TD Sequential indicator as a sign of further gains.
Maker’s performance in the RWA field
Martinez said Maker is one of the leading players in the RWA space. MakerDao has expanded its investment in RWA since mid-2023. As of 2023, the total value of RWA backed by DAI exceeded $2 billion. This highlights the promise of integrating these assets into DeFi. In addition, in September 2024, MakerDao revealed plans to invest another $1 billion of its reserves in tokenized U.S. Treasuries, further strengthening its involvement in the RWA space.
In addition, MakerDao also plans to introduce RWA as collateral to enhance the stability of DAI. These measures have increased the market value of DAI to US$5.3 billion and the daily trading volume to US$86.8 million.
These developments in the Maker ecosystem have Martinez predicting an impending rebound.
What is the market sentiment?
Martinez cited the TD Sequential indicator as a sign of a potential bull rally in his analysis.
According to the analyst, the indicator flashed four buy signals on the 3-day chart, which suggests that now is the best time to accumulate. He added that this will push MKR to $1,850.
According to this analogy, the downtrend may be coming to an end and a reversal may be imminent. The TD Sequential flashed four buy signals on the 3-day chart, which means there is a lot of upside potential. The 3-day chart is a longer time frame and is more reliable than short-term signals.
Therefore, multiple buy signals strengthen the possibility of a bullish reversal.
In terms of indicators...
Elsewhere, MKR also seems likely to see more gains on the price chart.
For example, the Maker funding rate, aggregated by exchange, has remained positive over the past week. This means that long holders are paying short holders — a sign of confidence in the future prospects of altcoins.
This is a bullish sign as longs are willing to pay a fee to hold their trade.
The positive OI-weighted funding rate can further support the demand for long positions. Over the past 10 days, MKR demand for long positions has been higher than short positions.
This means that investors expect the price of the altcoin to rise. This is another bullish sign.
Finally, open interest per exchange has increased over the past week from $40 million to $52.55 million at press time. This means that inflows have increased, with traders opening new positions while existing positions remain unchanged.
Therefore, as Martinez observed, the current market sentiment could see MKR rise further on the price chart. Therefore, if the current market sentiment holds, MKR could reach $1,760 in the short term.
