Break! Maker (MKR) can collect 30%, here’s why.
The cryptocurrency market has recovered significantly over the past few days, but Maker (MKR), despite initially lagging, now looks poised for a significant rally. Amid high market sentiment, MKR has recently broken out of a high price action pattern which has resulted in increased interest from traders and investors.
Maker (MKR) technical analysis and upcoming levels
According to expert technical analysis, MKR looks bullish as it has breached the head and shoulders price action pattern on the daily time frame. However, this bullish pattern occurred at the bottom of the support level and at the 200 Exponential Moving Average (EMA) in the weekly time frame.
The support from the 200 EMA and the formation and breakdown of the silver price action pattern changed the overall sentiment of the MKR token. If the recent opening, daily candle closes above $1,685, there is a good chance that MKR price will increase by 30% to reach the $2,200 level in the coming days.
MKR price momentum
At press time, MKR is trading near the $1,700 level and has experienced a price increase of over 6% in the last 24 hours. During the same period, the trading volume increased by a significant 70 percent, reflecting the growing participation of traders and investors in the recent period.
Bullish On-Chain Indicators
However, MKR's view of bullying is further supported by chain metrics. According to on-chain analytics firm Coinglass, the MKR Long/Short ratio currently stands at 1.031, indicating bearish sentiment among traders.
Additionally, open demand for the futures has risen by 16% in the past 24 hours and is trending higher, indicating growing interest from traders and investors.
Typically, traders and investors use open interest and a long/short ratio greater than 1 when building long positions. Considering all these metrics on the chain, bulls seem to be dominating the asset at the moment, MKR could be headed for a major upside rally in the coming days.