Maker: The if, but and so of MKR’s 75% ten-day rally

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It has been a while since Mak­er [MKR] expe­ri­enced any sig­nif­i­cant upside giv­en the bear­ish nature of the mar­ket, espe­cial­ly in the last two months. How­ev­er, the MKR bulls have final­ly made an appear­ance, result­ing in a healthy relief ral­ly in the last sev­en days.

What is your plan MKR?

MKR achieved a 75% ral­ly in the last 10 days, dur­ing which it soared as high as $1.34, from a month­ly low of $0.73. How­ev­er, at the time of writ­ing, the token slight­ly pulled back to $1.158. Its cur­rent price has pushed to the lev­els at which MKR trad­ed post the crash of May 2022.

Zoom­ing out on MKR’s price action reveals that it has been trad­ing with­in a descend­ing long-term chan­nel. Its lat­est ral­ly in the last two weeks was trig­gered by an inter­ac­tion with the descend­ing sup­port line. Addi­tion­al­ly, the token’s price action demon­strat­ed sig­nif­i­cant accu­mu­la­tion near the sup­port lev­el. This was char­ac­ter­ized by a note­wor­thy increase in buy­ing volume.

Source: Trad­ingView

The strong buy­ing pres­sure was also aid­ed by the fact that both the RSI and the MFI were over­sold at around mid-June. MKR expe­ri­enced a strong sell-off in the first half of the month. The heavy accu­mu­la­tion while in over­sold ter­ri­to­ry also aid­ed a strong bull­ish recovery.

Source: Trad­ingView

The RSI close to neu­tral 50 is now yield­ing some resis­tance, which means some prof­it-tak­ing hap­pened after cross­ing back above May lows. This also means the cur­rent lev­el intro­duces more uncer­tain­ty regard­ing price direction.

On the oth­er hand, May lows might also offer a per­cep­tion that MKR is still trad­ing at a dis­count. For­tu­nate­ly, on-chain met­rics can pro­vide more clar­i­ty into where the funds are flowing.

Can the MKR bulls scare off the bears?

The num­ber of active address­es in the last two weeks dropped from as high as 415 on 15 June to as low as 259 on 26 June. The num­ber remained con­stant at press time but the receiv­ing and send­ing address­es reg­is­tered slight changes.

For exam­ple, the num­ber of send­ing address­es increased from 174 to 175, while the num­ber of receiv­ing address­es grew from 190 to 194 in the last 24 hours.

Source: Glassnode

Receiv­ing address­es were high­er than send­ing address­es. While this seems too low to be con­se­quen­tial, they might make a sig­nif­i­cant impact if large amounts are moved. Exchange flows may pro­vide more clar­i­ty on the amount of MKR tokens moved.

Fur­ther­more, the exchange inflow vol­ume met­ric on Glassnode dropped from 888.48 on 26 June to 422.56 on 27 June. Mean­while, the exchange out­flow vol­ume met­ric saw a sharp uptick from 553.84 MKR to 4,551 MKR dur­ing the same time frame.

Source: Glassnode

More­over, MKR’s low­est trad­ing price on 27 June was $987, which means that at that price, rough­ly $4.49 mil­lion worth of MKR flew out of exchanges. Such large accu­mu­la­tions at that price lev­el are a sign that the price might hold well against the bears in the near future.

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