Stablecoin lending platform MakerDAO’s governance token Maker (MKR) has seen its value increase by nearly 10% in the last 24 hours. The increase is expected to continue this week. At the time of writing, MKR was trading at $3,195. A double-digit increase in trading volume accompanied the price increase over the last 24 hours.
Is More Growth Possible for MKR?
Evaluation of some basic technical indicators points to the possibility of further growth in MKR’s price. Firstly, the Elder-Ray Index, which predicts the balance of power between buyers and sellers in the market, was at a positive level at the time of writing.
A positive Elder-Ray Index value is a bullish signal indicating an increase in buying activity. Accordingly, the index has been giving positive values for MKR continuously since March 9. Since then, MKR’s price has risen over 50%, defying the general market pullback.
During the same period, MKR’s MACD line was above the signal line, confirming the cryptocurrency’s bullish trend in the spot market. When an asset’s MACD line crosses above the signal line, it indicates that the short-term moving average is trending higher than the long-term moving average.
This situation is considered a bullish sign as it indicates the re-emergence of bulls and an increase in accumulation pressure. Additionally, the token’s momentum indicators were detected above the relevant neutral lines, indicating high demand for MKR.
Interest in MKR Remains Strong
At the time of writing, the Relative Strength Index (RSI) was at 63.42, while the Money Flow Index (MFI) showed 66. These indicators suggest that market participants prefer to buy more MKR at these values rather than sell their holdings.
MKR’s Chaikin Money Flow (CMF) was above the zero line and showed an upward trend at the time of writing. A positive CMF value is seen as a sign of strength in the market. It is also considered a good indicator that the price rally can be sustained as it shows an inflow of liquidity into the asset.
Pay Attention to Maker’s MVRV Ratio!
MKR’s Market Value to Realized Value (MVRV) ratio, evaluated over a seven-day moving average, is at 98%. This suggests that MKR’s price is significantly higher than the price at which most investors bought their tokens, indicating that MKR could be overvalued.
Although this development is positive for MKR, some investors may see it as a sell signal. Such a situation would also indicate a potential decline in price.
