Analysis
MKR hits a year high of $1,600, what’s next?
MKR hits a year-high of $1,600, with on-chain data showing the possibility of further bullish gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MKR bulls smashed the $1,365 resistance to hit a year-high of $1,600.
- Long positions in the futures market showed bulls were keen to extend gains.
Maker [MKR] closed out September with a strong 25% rally that saw the DAO token smash the $1,365 resistance level and hit a year-high of $1,600.
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Despite the double pullback experienced at the $1,577 resistance over the past 48 hours, MKR maintained its uptrend on the lower and higher timeframes.
Concurrently, Bitcoin [BTC] started October strong by reclaiming the $28k price level. The king coin posted a solid bullish candle on the higher timeframes to break above the $27.5k resistance.
Bullish momentum overpowered bearish resistance
The $1,365 resistance level stood in the way of Maker’s bullish uptrend for over a month. Buyers experienced two rejections at the level on 2 August and 21 September, respectively.
However, the latest level retest saw bulls ramp up the buying pressure, with the RSI (Relative Strength Index) surging into the overbought zone. This broke the bearish resistance at the level and took MKR to a 2023-high of $1,600.
Despite the pullback, the OBV (On Balance Volume) continued to trend higher, signifying the presence of more bullish momentum. With bullish sentiment returning to the market, MKR bulls could hit another year-high in the coming days.
The short-term targets will involve breaking through the $1,577 resistance and flipping it to support. This will enable a further push for gains at $1,600 to $1,650.
How much are 1,10,100 MKRs worth today?
Buyers are not done with the bullish uptrend
Source: Coinglass
Buyers continued to leverage the bullish momentum in the futures market, with longs holding a 51.54% share of the open contracts, as of press time. This amounted to $27.56 million worth of buying positions.
Thus, the bullish uptrend and the buying momentum could translate to further bullish gains in the short term.
