- Amidst weak volatility seen on MKR recently, on-chain analysis gives a clue to an impending breakthrough.
- Charts show that technical indicators also agree with the long-term bullish outlook for MKR.
Despite the stagnant outlook seen in Maker's price action (MKR), signals from technical and on-chain indicators have maintained that it is poised for an uptrend. It goes without saying that this tardiness in the cryptocurrency's reaction has stretched a little more than expected.
Maker DAO price prepares for a bullish impulse
According to on-chain metrics tracker, Dune analytics, a correlation between the price and the total value of tokens that have been locked seems to signal a bullish trend. Historical data show MKR to have made a considerable increase from $432 seen on January 1 to $512, where it currently sits, accounting for just an 18.5% increment.
TVL vs price per day
It could also be observed that the total value of tokens locked within this period has skyrocketed by over 1000%, from $210 million to $2.3 billion. The discrepancy between the price growth and these tokens, which have been put out of circulation, suggests a rally could be in sight as the growing scarcity of MKR is expected to lead to a new uptrend.
A tool from Santiment, another provider of on-chain market insights, shows that MKR's cost has a track record of responding to spikes in the number of daily active addresses. On August 13, a surge to $797 was accompanied by an eruption in holders' activities on the blockchain. Upon observation, this market behavior implies more room for an impending upswing.
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Daily transaction vs price
Following MKR's rise above $790 on August 13, the governance token has returned most of its gains to the market. After a correction that saw it plummet by 44% over the next 47 days. Since then, there has been a slight return, which has seen the token trading between $490 and $590.
MKR/USD daily chart
The chart pattern seems to be enclosed within the parallel channel, meaning a potential rebound from the lower boundary to the upper edge. A slight upward inclination of the relative strength index (RSI) indicators confirms this bullishness as it currently rests within the midpoint.
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