- MKR is trading inside an ascending triangle pattern.
- Several on-chain metrics have turned bullish in favor of MKR, which is eying up $700.
MKR has been trading inside an ascending triangle for around 20 days, currently at $589, with a precise resistance level located at $604. The price got rejected several times from this upper boundary, but the support trendline below was held.
A breakout above $604 can drive MKR towards $700
On the 4-hour chart, MKR's price got rejected several times from the upper boundary of the triangle. However, the price has climbed above the 50-SMA and the 100-SMA, turning both into support levels. Most notably, the MACD is on the verge of turning bullish.
MKR/USD 4-hour chart
The last time this happened, the price of MKR rose by 6% within the next 24 hours. A bullish breakout above the resistance level at $604 can drive the digital asset towards a price target of $700.
MKR New Addresses chart
The number of new addresses joining the MakerDAO network is increasing significantly at 47% over the past week. This rise suggests that new investors are highly interested in the digital asset, which translates into buying pressure.
MKR MVRV chart
The Market-Value-to-Realized-Value (MVRV) ratio shows that bulls have a lot of room upside until it hits the 'danger zone,' which is above 13%. This area is currently located at around $700, which is the bullish price target for MKR.
Bears can push MKR down to $500
Nonetheless, failure to hold the 50-SMA and the 100-SMA on the 4-hour chart would shift the odds in favor of the bears. Breaking below the lower boundary of the ascending channel, presently around $575, can drive MKR down to $500.
MKR IOMAP Chart
This theory is further confirmed by the In/Out of the Money Around Price chart, which shows very little support until the area between $501 and $520 with a total volume of 342,000 MKR tokens. Inside this range of prices, a lot of investors bought a large sum of MKR tokens.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.