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.
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.
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.
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.
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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