Recent Market Strength in MKR

MKR’s recent records show market gains as large transaction volume climbs, along with active addresses.

Though a slight pullback could be on the horizon, the RSI has crossed into the overbought zone.

Market Performance

Maker (MKR) has demonstrated notable market strength despite a general downturn in the broader cryptocurrency space. In the last 24 hours, MKR has surged by 23% to roughly $1,727. This rally continues a bullish trend established over the past week, where the price has increased by 42% cumulatively.

Recent interest from large investors controlling a significant supply, along with derivative traders, has bolstered the ongoing rally.

Large Transactions on the Rise

Following a decline, large transactions are beginning to pick up as high-net-worth investors start buying MKR. Over the past 24 hours, this group has acquired 31,000 MKR, totaling $47 million at the time of this analysis. Such an increase in trading volume alongside rising prices indicates bullish sentiment among these investors.

Moreover, this transaction surge aligns with a growth in daily active addresses (DAA), showcasing heightened trader interaction with the token. Data from IntoTheBlock reveals that DAA has increased by 52% over the past week, signaling a growing interest as prices rise.

Possible Pause Before Further Rally

While MKR’s overall trend remains bullish, a brief pause may occur before continued upward movement. Currently, the asset has broken through a descending resistance line on its chart, indicating potential for a rally reaching up to $3,893.

However, there’s a risk that this breakout could be a false signal, reminiscent of prior false breakouts. Observing the Relative Strength Index (RSI) suggests this could be a possibility as it has entered the overbought territory, signifying a likely retracement. A potential drop could see the asset find support at $1,486.

If this support level holds, MKR may continue on its upward path toward the projected target of $3,893, bolstered by positive market sentiment.

Strengthening Bullish Sentiment

The prevailing bullish sentiment among DeFi traders indicates that any decline is likely just a temporary pause in the ongoing rally. Currently, long traders are actively placing buy orders, with the Funding Rate holding at a substantial 0.0291%, according to Coinglass. This surge implies strong conviction among long traders who are willing to pay a premium to maintain their positions.

If the market continues to be bullish, meaning more traders keep their buying positions open, any anticipated pullback due to the overbought RSI might be short-lived, allowing for further asset appreciation.