Maker: Buyers can extend gains from this level
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bulls rallied strongly from a key Fib level to start September strong.
- Surging CVD pointed to more gains for buyers.
Maker [MKR] bulls seized control of the price action with 20.5% gains after a deep retracement in August. The bullish rebound over the past couple of days helped to maintain Maker’s uptrend on the higher timeframes.
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Maker’s upward price trajectory occasioned by its surging on-chain volume metrics was in stark contrast to the general market conditions brought by Bitcoin [BTC] dropping below $26k again. This put MKR in good stead to achieve more gains in the mid to long term.
Critical Fib level provided the support for bullish reversal
A look at the 12-hour timeframe for MKR showed that the blockchain protocol dipped by over 22% between 14 August and 25 August. However, bulls found support at the 100% Fib level ($986) before rallying strongly from the 78.6% Fib level ($1,039) on 31 August.
While the price surge cooled off between the 38.2% Fib level ($1,139) and the 23.6% Fib level ($1,175), the on-chart indicators highlighted the bullish outlook. The Moving Average Convergence Divergence (MACD) posted a strong bullish crossover to highlight the bullish strength.
Similarly, the Relative Strength Index (RSI) stayed above the neutral 50 and showed good buying pressure with a reading of 61. The On Balance Volume (OBV) also continued to trend higher, showing good demand for MKR.
Based on the Fib levels, buyers can reach profit zones at $1,233 (0% Fib level) and $1,292 (-23.6% Fib level). Alternatively, a price rejection at any of the Fib levels above the current price could bring bears back into the picture.
Read Maker’s [MKR] Price Prediction 2023-24
Surging CVD showed huge demand behind MKR
Data from Coinalyze pointed toward more gains for buyers. The spot CVD has risen rapidly since 31 August. This was an indication of sustained demand for MKR in the futures market.
Likewise, the Funding Rate also stayed positive since 31 August, denoting strong bullish sentiment amongst speculators.