While the cryptocurrency market has been on an upward trajectory in recent weeks, Maker [MKR] has diverged from this trend. The digital asset has witnessed a significant slump in its value.
As of the latest data, Maker was priced at $1111, marking a 32.58% decrease over the past month and a 6.14% drop in the last week.
Despite the bearish trend, there has been a resurgence in market confidence as Maker’s trading volume spiked by 55.39% in the past day, signaling a potential turnaround for MKR.
Crypto market observers have been active following the latest developments. Notably, Ali Martinez, a renowned analyst, took to X (formerly Twitter) to highlight that MKR is exhibiting a bullish trend reversal, as indicated by the Stochastic RSI.
Evaluating Market Sentiment
In his assessment, Martinez pointed out that Maker’s TD sequential indicator has flashed a buying signal, suggesting that the prevailing bearish trend is losing steam, paving the way for increased buying pressure.
He further noted that MKR’s RSI on the 3-day chart is in oversold territory, presenting an attractive opportunity for investors to buy the dip.
Regarding the StochRSI, Martinez emphasized a bullish crossover, with the K line crossing above the D line three days earlier, pointing towards building positive momentum.
Lastly, Martinez made a case for MKR by highlighting the imminent bullish turn of the MACD indicator.
Insights from MKR Charts
While Martinez’s analysis paints a hopeful picture for MKR, additional metrics unveil a contrasting narrative.
For instance, Maker’s Daily Active Addresses have seen a significant drop in the past week, sliding from 916 to 388. This decline signifies reduced demand for the altcoin, reflecting wavering investor confidence.
Moreover, Maker’s Exchange Supply Ratio has been consistently rising over the last month, indicating a surge in token movements towards exchanges in preparation for selling.
The diminishing holdings among investors imply a lack of conviction in the market sentiment, further supported by a decrease in Maker’s Outflow volume, indicating decreased withdrawals from exchanges for cold storage, hinting at a cautious approach anticipating future price movements.
In summary, despite Martinez’s optimism about a trend reversal, on-chain statistics suggest that the bearish momentum remains strong. If the current conditions persist, MKR may experience further declines before attempting a new rally.
Under this scenario, the altcoin could find support at $1000. Nevertheless, in case of a reversal, Maker could target $1250 in the immediate future.