Accumulation of Maker (MKR) tokens has surged in the past week, with three new wallets purchasing $18.6 million worth of MKR.
This significant acquisition signals growing interest in MakerDAO’s governance token. The buyer’s decision to withdraw their tokens from Binance and move them into self-custody further indicates their confidence in MKR’s future price potential.
Maker (MKR) positive signals from technical analysis
Technical indicators, such as the Moving Average Convergence Divergence (MACD), provide positive signals for MKR’s price prospects. When writing, the MACD stands at 29.10, indicating a bullish divergence.
This is corroborated by the crossover of the 12-day Exponential Moving Average (EMA) in blue and the 26-day EMA in orange. Such a crossover is often seen as a bullish indicator in cryptocurrency trading.
On balance volume (OBV) as a key indicator
However, the On Balance Volume (OBV) remains a critical factor to watch. The OBV measures the balance between buying and selling pressure and plays a vital role in confirming a cryptocurrency’s bullish potential. For MKR to reach the $2,000 mark, the OBV reading must increase significantly.
The recent accumulation of MKR tokens suggests a potential trigger for an increase in the OBV. If this trend continues, the MKR price could increase, with a possible 40% surge to reach the $2,000 milestone. This accumulation is a positive sign for MKR and a potential catalyst for further price growth.
Golden cross points to a bullish market
Another encouraging sign for MKR is the recent occurrence of a golden cross. This cross, marked by the crossover of short-term and long-term moving averages, often signifies a shift from bearish to bullish sentiment in the market. With the golden cross appearing as 2024 begins it suggests that the market sentiment is leaning toward the positive side for MKR.
While the outlook for MKR appears promising, it’s essential to acknowledge that potential price jumps are not without challenges. Cryptocurrency markets can be highly volatile and subject to various external factors. Investors and traders should exercise caution and conduct thorough research before making investment decisions.
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