The native cryptocurrency of MakerDAO, MKR, is showing signs of a significant uptrend as it displays a bullish pattern on the daily chart.
Market data indicates a growing confidence and interest in MKR among large investors and traders, according to insights from blockchain analytics company Coinglass.
Increasing Open Interest for MKR
After breaking out from a long-standing downtrend, MKR has seen a remarkable surge in open interest, with a 37% rise in the last 24 hours and a 16% increase in the last four hours.
The rising open interest signifies a high level of engagement from traders, resulting in a notable uptick in new positions being opened.
Moreover, the Long/Short ratio for MKR currently sits at 1.08, highlighting a strong bullish sentiment in the market. Data reveals that a majority of the top traders, accounting for 53%, hold long positions, while 47% hold short positions at the moment.
These combined metrics indicate that investors and traders are actively backing MKR, potentially setting the stage for an upcoming rally.
Technical Analysis and Key Levels for Maker
According to technical analysis by CryptoCrypto, MKR is facing resistance near the $2,220 mark after breaking above a long-term downtrend. However, it is primed for a breakout from this level.
Considering recent price movements and past momentum, a successful breach and daily close above $2,230 could propel MKR by 35% towards the $3,200 level in the near future.
At the time of writing, MKR was trading above the 200-day Exponential Moving Average (EMA) on the daily chart, signaling an upward trend. Nonetheless, the Relative Strength Index (RSI) suggests a potential pullback, given its overbought status.
RSI is a widely used technical indicator that helps traders and investors identify overbought or oversold conditions in an asset, aiding in decision-making processes.
Currently trading around $2,220, MKR has recorded a price surge of more than 24% in the past 24 hours, accompanied by a 180% spike in trading volume, indicating increased market activity and positive market sentiment.