Maker Supply on Exchanges Continues to Decline: Is a Rally to $3K Possible?
Maker recently witnessed a pause after a remarkable six consecutive days of gains on the chart. The impressive price rally resulted in a nearly 30% increase in value, pushing Maker’s price from $2,300 to $3,000. This surge in price indicates a successful breakout from a correction phase for Maker.
Additionally, on-chain data reveals a decline in supply on exchanges, which could potentially create an imbalance in MKR. At the time of writing, Maker experienced a slight correction with a 1.51% drop, hovering around the $2,800 mark.
Previously, the resistance level of $2,600 was swiftly broken during a sharp breakout and may now serve as a support level, providing a potential pathway for the price to continue climbing.
Maker (MKR) plays a crucial role as the governance token for MakerDAO and the Maker Protocol, both of which are decentralized organizations and software platforms built on the Ethereum blockchain.
The recent drop in Maker supply on exchanges is significant, decreasing by approximately 14% from its peak of 128.3K on July 9th. This reduction suggests a bullish sentiment as it decreases the number of tokens available for sale.
Currently, the supply of Maker on exchanges has dwindled to 111K tokens, potentially leading to an imbalance that could impact the MKR price. Within a span of one month, data from Santiment shows a surge in the total number of holders from 100.6K to 100.9K.
Furthermore, the intraday transaction volume has witnessed a decline of 41% to $96.35 million, accompanied by a minor drop in price. The volume to market cap ratio, standing at 3.76%, indicates low volatility.
In terms of technical analysis, MKR recently paused its strong rally after surging by 30% from $2,300 to $3,000. The previous resistance at $2,670 has now transformed into a support level, potentially facilitating further gains beyond the $3,000 mark if the bulls can maintain a position above $2,670.
From a technical standpoint, MKR appears to be comfortably above the 20, 50, and 200 Exponential Moving Averages (EMAs), suggesting a positive outlook in both the short and long term. These key EMAs could act as dynamic support for the MKR price, potentially leading to a bounce back. The crossing of the MACD lines and signal lines above the zero line further indicates a short-term bullish continuation.
With Maker recently experiencing a surge of nearly 30%, breaking out of a correction phase, it is worth monitoring its current position around $2,800 after a minor intraday decline of 1.51%. Furthermore, the on-chain data reveals a 14% drop in MKR supply on exchanges, now resting at 111K tokens. This reduction in supply could potentially create a bullish scenario for Maker, opening up the possibility of surpassing the $3,000 mark.
Notably, the number of holders has increased from 100.6K to 100.9K, and MKR is currently above key 20, 50, and 200-day EMAs, suggesting a positive outlook. The MACD lines also indicate a short-term bullish continuation.
In conclusion, the declining supply of Maker on exchanges coupled with positive technical indicators and a recent breakout suggest that a rally beyond the $3,000 level is possible for MKR.