- MKR has increased by 11.52% in the last week
- An analyst predicts that MKR may be poised for a rally due to a significant buy signal
In the week leading up to now, the cryptocurrency market has experienced considerable recovery according to the charts. While Maker [MKR] has not been at the forefront, its recent gains have surpassed its weekly losses. As of this moment, MKR is trading at $1683, reflecting an 11.52% increase over the past week.
Before this uptick, Maker had been following a downward trend, seeing a 6.68% decline on monthly charts.
Despite this recent spike, Maker’s prices remain substantially below its recent peak of $3,125 reached in July. It is also down by about 72.2% from its all-time high (ATH) of $6,391.
As a result, current market trends have led analysts to discuss the variables contributing to this latest surge. Analyst Ali Martinez suggests that MKR’s advancements in the RWA sector are pivotal to its recent rise. He points to the TD Sequential Indicator as an indication of potential further gains.
Maker’s Progress in the RWA Sector
Martinez asserts that Maker is a prominent player in the RWA sector. Since mid-2023, MakerDao has broadened its engagement with RWAs, and by 2023, the total value of RWAs secured by DAI surpassed $2 billion, showcasing its commitment to integrating these assets into DeFi. Furthermore, in September 2024, MakerDao announced plans to allocate an additional $1 billion of its reserves into tokenized U.S. Treasuries, further solidifying its role in the RWA market.
Additionally, MakerDao aims to utilize RWAs as collateral to boost the stability of DAI. These initiatives have helped DAI’s market value rise to $5.3 billion, with its daily trading volume reaching $86.8 million.
These advancements within Maker’s ecosystem lead Martinez to anticipate an impending rally.
Market Sentiment Insights
In his analysis, Martinez referred to the TD Sequential indicator as a herald of a possible bull rally.
Source: X
The analyst notes that this indicator has presented four buying signals on the 3-day chart, suggesting now is an ideal time for accumulation. He predicts that this momentum could propel MKR to $1,850.
Considering this perspective, it appears that the downtrend may be nearing its end, with a potential reversal on the horizon. The appearance of four buy signals on the 3-day chart indicates robust prospects for upward movement. The 3-day chart represents a long timeframe and is deemed more reliable than short-term indications.
Consequently, these multiple buy signals enhance the possibility of a bullish turnaround.
Analyzing the Metrics
On additional fronts, it seems MKR is well-positioned for further price climbs.
Source: Santiment
For instance, Maker’s funding rate across exchanges has stayed positive over the last week, indicating that holders of long positions are compensating short position holders—a sign of their confidence in the altcoin’s future.
This serves as a bullish indicator since long holders are willing to incur a fee to maintain their trades.
Source: Coinglass
This demand for long positions is further corroborated by a positive open interest-weighted funding rate. For the past 10 days, MKR has witnessed greater demand for long positions than for shorts.
This trend indicates that investors are expecting the altcoin’s price will ascend, which serves as another bullish sign.
Source: Santiment
Finally, the open interest per exchange increased from $40 million to $52.55 million over the past week. This indicates a higher influx of funds, as traders are opening new positions while existing ones are being maintained.
Thus, as Martinez points out, the current market sentiment may lead MKR toward greater price increases. If this sentiment continues, MKR could reach $1,760 in the near term.
