Maker (MKR), the popular decentralized finance (DeFi) token, has recently gained attention as it shows signs of a significant price rally. The cryptocurrency has reacted positively to a major support zone, where large buy orders have fueled its recent price surge. Traders are now speculating on whether this buying pressure will continue, possibly pushing the price to new heights.

In just the past 24 hours, MKR’s price has seen a 1.66% increase, fueling optimism that the cryptocurrency is setting the stage for a much larger price movement. According to experts, this upward momentum could be the beginning of a bigger rally, potentially boosting MKR by as much as 41%, aiming for a key resistance level of $1,800.

Key Support Zone Signals Potential Rally

One of the critical factors driving MKR’s recent price increase is its reaction off a well-established demand zone. This zone, located between $1,220.29 and $1,258.43, saw an overwhelming number of MKR tokens traded—around 237,880 MKR, worth approximately $299 million. The high trading volume within this area suggests that many traders are positioning themselves to accumulate MKR, which has historically been a strong indicator of bullish movement.

The In/Out of the Money Around Price (IOMAP) indicator, which tracks the buying and selling activity at various price levels, has confirmed that this price zone is a crucial demand area for MKR. When such a large volume of assets is traded at a particular price level, it typically signals strong support and could set the stage for a breakout.

Symmetrical Triangle Formation Points to Bullish Breakout

From a technical analysis perspective, MKR appears to be gearing up for a breakout from a symmetrical triangle pattern. This pattern occurs when the price converges between support and resistance lines, indicating a period of consolidation. Breakouts from symmetrical triangles often result in sharp price movements in the direction of the breakout.

Currently, MKR’s chart shows that it is on the verge of breaking through key resistance levels. If the cryptocurrency manages to push past these resistance points, there is potential for a surge of up to 41%, bringing MKR closer to the $1,800 mark. The presence of large buy orders in the market only strengthens the likelihood of this bullish breakout.

Rising Market Sentiment and Increased Long Positions

The broader market sentiment surrounding MKR remains positive, particularly among derivatives traders. According to recent data from Coinglass, the Open Interest (OI) for MKR has risen significantly in the past 24 hours, reaching $87.80 million. This indicates an increase in the number of unsettled derivative contracts and suggests that more traders are betting on MKR’s price increase.

Additionally, the Funding Rate, which tracks the cost of holding long positions, has been rising steadily. As of the latest data, the aggregated Funding Rate stands at 0.0088%. This increase typically suggests that long positions are dominant in the market, with traders willing to pay a premium to maintain their bullish bets. In essence, the market appears to be primed for further upward momentum.

Profit-Taking Activity Could Slow the Rally

While the overall sentiment in the market remains bullish, some traders are starting to take profits, as indicated by the recent positive netflow data. This metric, which tracks the buying and selling activity of assets, shows that 989.63 MKR tokens (worth around $1.2 million) were sold in the past day. However, this level of selling is relatively low compared to the earlier buying pressure, meaning most traders are holding their positions.

Still, profit-taking activities can be a double-edged sword. If selling pressure continues to increase, it could indicate a shift in sentiment and potentially slow MKR’s upward movement. While it’s still too early to tell whether this is just a temporary phase of profit-taking or the start of a more significant pullback, the market remains largely bullish for now.

What’s Next for MKR?

Looking ahead, the key factors that could drive MKR to its target of $1,800 include continued large buy orders, sustained bullish sentiment in the derivatives market, and the breakout from the symmetrical triangle pattern. Traders will be watching closely for any signs of increased selling activity, as this could signal a shift toward bearish sentiment. However, if MKR manages to hold its gains and break through resistance, the 41% rally to $1,800 could become a reality.

For now, MKR remains one of the most closely watched cryptocurrencies in the DeFi space, with traders eagerly awaiting the next price movement. If the current trend continues, Maker’s price could see substantial growth in the coming days.

Conclusion: Is $1,800 Within Reach?

The recent uptick in MKR’s price has raised hopes for a potential rally, with some analysts predicting a 41% price surge if the cryptocurrency manages to break through key resistance levels. As the market sentiment remains largely bullish, with rising long positions and strong support at critical price zones, the conditions appear favorable for a potential rally. However, profit-taking could pose a challenge to MKR’s growth. Only time will tell if MKR can sustain its momentum and reach its target of $1,800 in the coming days.