In recent days, the cryptocurrency market has experienced a remarkable recovery. Among the digital currencies making waves is Maker (MKR). Initially lagging behind other cryptocurrencies, MKR now appears ready for a significant rally. With a surge in bullish market sentiment, MKR has broken out of its bullish price action pattern, attracting increased interest from traders and investors alike.
Maker (MKR) Technical Analysis and Upcoming Levels
Expert technical analysis suggests that MKR is currently in a bullish phase. The token has successfully broken its inverted head and shoulder pattern on the daily time frame. This bullish pattern emerged at the bottom of the support level and on the 200 Exponential Moving Average (EMA) in a weekly time frame.
Support from the 200 EMA, coupled with the formation and breakout of a bullish price action pattern, has shifted the overall sentiment for MKR. With its recent breakout, if MKR closes a daily candle above the $1,685 level, there is a strong possibility that the price could rally by 30%, potentially reaching the $2,200 level in the coming days.
MKR Price Momentum
At the time of writing, MKR is trading near the $1,700 level, experiencing a price surge of over 6% in the past 24 hours. During the same period, its trading volume has significantly increased by 70%, indicating rising participation from traders and investors amid the recent breakout.
Bullish On-Chain Metrics
MKR’s bullish outlook is further reinforced by on-chain metrics. According to the on-chain analytics firm Coinglass, MKR’s Long/Short ratio currently stands at 1.031, indicating a bullish sentiment among traders.
Additionally, MKR’s future open interest has jumped by 16% in the past 24 hours and has been steadily rising. This trend indicates growing interest from traders and investors.
Traders and investors often use a combination of rising open interest and a long/short ratio above 1 when building long positions. Considering all these on-chain metrics, it appears that bulls are currently dominating the asset, potentially driving MKR toward a massive upside rally in the coming days.
