The cryptocurrency market is buzzing this week, particularly with the performance of Maker (MKR). The DeFi token rallied over 44% in just one week, demonstrating its resilience even as large wallet investors and whales take profits amidst this ongoing surge. In this article, we’ll delve into the on-chain and technical indicators that suggest further gains may be on the horizon for Maker.
According to data from Coinglass, there has been a notable spike in the Open Interest (OI) for MKR on February 21, indicating a significant increase in the total value of outstanding contracts for the token across derivatives exchanges. At the close of trading, MKR OI stood at $116.85 million, which correlates with the surge in price and heightened demand for the token among traders.
Additionally, the total value locked (TVL) in MKR has significantly climbed to nearly $5.675 billion, highlighting the rebranding efforts toward the Sky Protocol, which appear to be effectively driving adoption. The momentum does not stop there; Santiment analytics show that the number of active MKR addresses has hit a nearly three-month peak this week, showcasing rising interest from traders.
However, with 30% of the wallet addresses currently holding MKR at unrealized losses, and 65.55% enjoying unrealized gains, combined metrics from IntoTheBlock hint that while some may be cashing out, steady hands are likely to remain active as indicated by the capitulation trend among traders.
On the technical side, Maker broke out of its downward trend on February 12, enabling it to continue climbing. Currently trading at $1,473, MKR is nearing critical resistance levels at $1,632 and $2,050. The Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators exhibit bullish signals, suggesting further potential for price increases. A rally could potentially see MKR testing resistance levels and achieving gains of nearly 15% in the coming days.
As the market observes, token burn initiatives this week saw more than $17 million worth of Maker burned, reducing the supply and potentially bolstering price stability amidst the ongoing ‘DAO drama’ surrounding governance proposals within Maker. As the debate continues, MKR’s impressive performance remains unfazed, underscoring its strength as a leading player in the DeFi space.
