Maker [MKR] Price Prediction: Why Maker [MKR] can rally 126% as bullish momentum builds

Despite the prevailing downturn in the broader cryptocurrency market, Maker [MKR] has demonstrated remarkable resilience, showcasing a 23% surge in the last 24 hours to around $1,727.

This upward movement marks a continuation of the bullish trend observed over the past week, resulting in a cumulative increase of 42%.

The recent uptrend in Maker [MKR] can be attributed to the heightened interest from significant investors and derivative traders, who are actively contributing to the current rally.

Notable Increase in Large Transactions

Following a period of decline, large transactions have begun to show a gradual uptick, indicating that investors with substantial capital are now acquiring the asset.

Over the past 24 hours, this group has purchased 31,000 MKR, valued at $47 million at the time of analysis.

The notable spike in trading volume, accompanied by a corresponding price surge, signals a bullish outlook from these investors.

This surge in transactions coincides with a rise in daily active addresses, reflecting an increased engagement with the token among traders.

Data from IntoTheBlock reveals a 52% surge in active addresses over the past week, underscoring the growing interest alongside the price appreciation.

Anticipating a Momentary Pause before a Resumption in the Rally

While the ongoing rally for MKR remains bullish, a brief consolidation phase might precede further upward movement.

The asset has recently broken a descending resistance line pattern on the chart, hinting at a potential rally towards higher levels.

If the momentum sustains from the current level, MKR could witness a 126% surge, targeting a new high at $3,893, as depicted in the chart.

However, there is a probability that the breakout from the descending line could be a false signal, akin to the previous instance denoted by the yellow circle on the chart.

A closer examination of the Relative Strength Index (RSI) suggests a potential fakeout scenario, given its entry into the overbought territory, indicating a likely retracement.

In the event of a retracement, the support level around $1,486 could provide a floor for MKR prices.

Strengthening Bullish Sentiment Supports the Narrative

The prevailing bullish sentiment among DeFi traders implies that the recent dip could be a temporary pause in the broader uptrend.

Current market conditions show continued buying activities from long traders, with the Funding Rate remaining notably high at 0.0291%, according to Coinglass.

The persistence of this surge indicates strong conviction among long traders, willing to pay a premium to uphold their positions, boosting the overall positive sentiment.

Should the market sustain its bullish trajectory, with traders maintaining their long positions, any potential pullback resulting from the overbought RSI is likely to be transient, paving the way for further upside potential.