Maker DAO’s MKR has experienced a significant push in the recent uptick of the cryptocurrency market. The token rose from a low of $1,265 to a high of $1,343, consolidating its upswing with an impressive 5% increase within a 24-hour period. Currently, MKR is trading at $1335, diligently striving to conquer the critical resistance at $1,350. The substantial rise in the token’s value indicates that buyers are in control and their active engagement could potentially lead to further gains for MKR.
Despite the struggle for most tokens to recover, MKR stands out as it ranked number one among today’s top-gaining cryptocurrencies, surpassing the likes of Chainlink and Bitcoin Cash by 2%. Furthermore, while the overall crypto market cap has experienced a slight increase of 0.63%, the trading volume has decreased by 4%, indicating a decline in trading activity. Interestingly, MKR has recorded a significant 47% increase in trading volume, signifying a surge in buying strength within the Maker market.
The recent proposal to deploy Spark Protocol on zkSync Era Mainnet has sparked optimism among investors and boosted their sentiment towards MKR. If adopted, this proposal will include wETH, rETH, wstETH, and DAI as initial collaterals for borrowing on the Spark Protocol. Additionally, it aims to set a liquidity goal of 2 million to promote Spark Protocol’s growth on zkSync. The Maker community has overwhelmingly voted in favor of launching Spark on Gnosis Chain, making DAI, Maker DAO’s stablecoin, the native gas token of Gnosis Chain. This development not only allows users to earn increased yield when lending their DAI tokens but also generates positive sentiment within the Maker ecosystem, leading to increased demand for MKR.
Analyzing the daily chart of MKR reveals two consecutive bullish candlesticks forming around the $1,300 price level. This formation indicates high token demand and increased buying strength within this zone. Moreover, the buying pressure has propelled MKR above a key support level of $1,086 and a critical moving average of $1,166. However, the bulls have encountered resistance at the $1,354 level, as evidenced by the formation of two bearish candlesticks. These sell activities from profit-taking traders are hindering further progress for MKR.
Although MKR has remained slightly below $1,354 since the beginning of the trading session at $1,338, the Relative Strength Index (RSI) presents a positive outlook. The RSI, which increased from 63 to 64.97 and is approaching the overbought area, suggests a rise in buying strength. This implies that more buyers are entering longer positions and are prepared to counter the selling pressure that is resisting the token’s rally.
If buyers maintain the current momentum, it is highly possible for MKR to experience a breakout above the $1,354 resistance level and move towards its next target of $1,500 before the end of the trading day. The bullish sentiment surrounding MKR, along with the positive market conditions and increased demand, continue to drive the token’s price towards new heights. However, it is important to monitor the market closely and assess any potential factors that may impact MKR’s future performance.
Maker DAO’s MKR token showcases bullish momentum as it records significant gains amid the broader cryptocurrency market. With increased buying strength, propelled by positive sentiment resulting from the proposal to deploy Spark Protocol, MKR has the potential to continue its upward trajectory. Traders and investors should closely monitor MKR’s technical analysis and market developments to make informed decisions regarding their positions.
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