Home Altcoins News Maker (MKR) Eyes $5K Target as Ethereum Drives Bullish Momentum

Maker (MKR) Eyes $5K Target as Ethereum Drives Bullish Momentum

Maker Price

Maker (MKR) is drawing significant attention from investors as Ethereum (ETH) shows strong growth, setting the stage for a potential rally in MKR. Following a breakout from a long-term downtrend, MKR is positioning itself for a possible climb toward $5,000 by 2025. The token’s recent technical patterns and the increasing strength of Ethereum could propel MKR into a new upward phase.

Currently, MKR is trading at $1,727.42, experiencing a slight 0.69% decline in the last 24 hours. Despite this short-term drop, the token has gained 17% over the last month. MKR’s market capitalization stands at $1.54 billion, with a circulating supply of 890,000 tokens. The rally in Ethereum’s price has provided renewed optimism for MKR holders, as the token appears poised to follow Ethereum’s bullish momentum.

Breakout from Long-Term Downtrend

MKR had been in a downtrend for much of 2024, confined within a descending channel that saw lower highs and lower lows. However, late November brought a change in trend as MKR broke free from this long-standing downtrend, signaling a potential market reversal. This breakout offers hope for a price recovery, and analysts are starting to predict a rally based on this shift.

Further strengthening the bullish case for MKR is the formation of a cup-and-handle pattern, which is often considered a precursor to upward price movement. The “cup” reflects accumulation, while the “handle” shows consolidation before a breakout. This chart pattern, coupled with the price action, suggests that MKR may be on the verge of a substantial price increase in the near future.

Key Levels to Monitor

MKR is currently trading near $1,746, with key support levels at $1,760 and $1,440. Resistance levels are seen at $2,200, $3,800, and potentially as high as $4,400. The 50-day Moving Average (MA) recently crossed above the 200-day MA, forming a golden cross and signaling a shift toward bullish sentiment. However, MKR remains below its 200-day MA at $1,919, and this level could act as a resistance point if the price fails to climb above it.

To maintain momentum, MKR must secure prices above $1,700, or it could test lower support levels, including $1,500. If the token manages to break past the 200-day MA and push through resistance, it could open the door for higher prices.

Futures Market Activity and Market Sentiment

Recent data from Coinglass highlights a decrease in MKR’s futures market Open Interest (OI), down 8.67% to $78.83 million. This suggests a reduction in speculative activity and leveraged positions. Despite this, MKR’s trading volume has surged by 41.59%, reaching $184.94 million, which indicates increased participation in the spot market.

The reduction in futures OI may point to a pause in speculative activity, but it doesn’t rule out renewed momentum if market sentiment turns more bullish, especially in light of Ethereum’s ongoing rally.

Confidence Among Long-Term Holders

On-chain data reveals that 62% of MKR holders are in profit at the current price, with 84% of holders being long-term investors who have held for over a year. Large holders dominate the supply, controlling 82% of MKR, signaling strong confidence in the token’s future. This long-term holder base suggests that the overall sentiment around MKR remains positive, even in the face of short-term volatility.

As Ethereum continues its bullish run, MKR’s performance is closely tied to the broader crypto market. If Ethereum maintains its upward trajectory, MKR is likely to benefit, with a potential target of $5,000 in sight. However, careful monitoring of key technical levels and market conditions will be crucial in determining the next phase of MKR’s price action.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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