Here is why MKR could rally

Grayscale, a leading crypto asset manager, launches Grayscale MakerDAO Trust for its investors.
MKR's Exchange Flow Balance shows a negative spike, signaling a bullish price move.
On-chain data shows that MKR's open interest is rising, indicating new buying activity, which suggests a bullish trend.
Investors should be cautious about decreasing Development Activity.

Maker (MKR) saw a 6.3% price rally on Tuesday and remains up 0.3% at $2,147 on Wednesday. A negative spike in MKR's Exchange Flow Balance and rising open interest signal a bullish trend. At the same time, Grayscale's launch of the MakerDAO Trust further reinforces a positive outlook for the token in the near future.

Maker sees new buying activity amid decreasing supply on exchanges

Data from CoinGlass shows that the futures’ Open Interest (OI) in Maker at exchanges is increasing. The OI indicates the total number of outstanding derivative contracts that have not been settled (offset by delivery) and whether money flows into the contract are increasing or decreasing.

Increasing OI represents new or additional money entering the market and new buying, which suggests a bullish trend. When OI decreases, it is usually a sign that the market is liquidating, more investors are leaving, and the current price trend is ending.

The graph below shows that MKR's OI increased from $91.87 million on Monday to $123.86 million on Tuesday, indicating that new or additional money is entering the market and new buying is occurring.

MKR Open Interest chart

Santiment's Exchange Flow balance for MKR shows the net movement of tokens into and out of exchange wallets. A positive value indicates more MKR tokens entered than exited, suggesting selling pressure from investors. Conversely, a negative value indicates more MKR left the exchange than entered, indicating less selling pressure from investors.

In MKR's case, the Exchange Flow balance has slumped from 1,265 to -1,760 from Sunday to Tuesday. This negative spike indicates increased buying activity and decreasing selling pressure among investors.

During this event, the MKR Supply on Exchanges declined by 1.36% in two days. This is a bullish development, which further denotes investor confidence in Maker.

MKR Exchange Flow Balance and Supply on Exchange chart

Despite Grayscale's launch of MakerDAO trust, rising open interest and decreasing supply on exchanges, MakerDAO's development activity still needs to grow, suggesting that investors should not anticipate an immediate price rally for the token.

MKR Development Activity

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