MakerDAO could climb to $1700 — Here’s what bulls can expect

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• MKR has a firm bullish structure and its recovery from $1037 pointed toward further gains
• The evidence from the On-Balance Volume (OBV) indicator was a concern

MakerDAO [MKR] almost reached its 2023 high at $1370 it on 2 August, touching $1366 a few hours before press time. One of the reasons behind the growth and the uptrend in the past three weeks was the accumulation of MKR whales.

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A post from Lookonchain showed two whales bought millions of dollars worth of MKR in September. On-chain data from Santiment also showed accumulation across the network.

The bulls reveal their intent in the market after the price action in September

Source: MKR/USDT on TradingView

On 31 August MKR saw a price spike higher as a large volume of buyers swept into the market. This shifted the market structure on the 1-day chart bullishly, and the Relative Strength Index (RSI) also climbed above neutral 50 on that day.

Together they showed a change in sentiment in favor of the buyers. Moreover, the Fibonacci retracement levels showed that the 61.8% retracement level at $1037 was defended in mid-August. The recent rally toward the highs from early August was a strong sign that the bulls have the power to drive MKR to new highs.

While the price action was extremely positive and called for a rally to the Fib extension levels at $1497 and $1703, the On-Balance Volume (OBV) has been in a downtrend over the past six weeks. This was a sign that buying volume was weak. If the rally is not backed by genuine demand, the prices could drop once more.

The rising MVRV showed some sell pressure could seep into the market

Source: Santiment

Apart from the data from Lookonchain, the mean coin age metric has been seen on an uptrend since early August. This was a sign of accumulation by holders across the network. The weighted sentiment was positive as well.

Realistic or not, here’s MKR’s market cap in BTC’s terms

The Market Value to Realized Value (MVRV) ratio was deep in the positive territory. This could prompt some holders to realize their profits, which would translate into selling pressure on MKR and a possible dip. A move below the $1210 level would mean it was another pullback instead of a mere dip.