Maker has received significant attention from crypto market enthusiasts lately. This situation brought about significant increases in the altcoin price. Maker has become one of the top earners in the market today. Crypto analyst David says MKR has more fuel.
Potential catalyst behind Maker’s rise
cryptokoin.comAs you can see from , the market has a stagnant outlook. However, there are those who manage to navigate these backwaters. Many analysts say there is growing interest in interest-bearing stablecoins like MakerDAO’s DAI in the decentralized finance (DeFi) world. Unlike traditional stablecoins, DAI derives its return from unique sources such as stability fee produced in Maker Vaults and real-world assets such as US Treasury bonds.
This trend has a significant positive impact on MakerDAO’s position in the DeFi environment. It is also exploring opportunities to expand its ecosystem, including embedding the Spark Protocol in the zkSync Era Mainnet. This will help MakerDAO increase liquidity and further accelerate its growth. Meanwhile, interest-bearing stablecoins like DAI offer users the opportunity to earn returns similar to a traditional savings account while keeping their funds available. However, it is important to note that depositing funds into these accounts may limit immediate access to liquidity.
Altcoin positioned to move higher
Crypto analyst David evaluates MKR’s technical picture. Maker (MKR) price reached a yearly high of $1,380 in early August. However, it has been in decline ever since. During this period, the price fell to the previous long-term resistance level at $980. However, it then recovered. There are long wicks below all three candles (green arrows) reacting to the $980 level on a weekly basis. This indicates that the bulls are buying aggressively as the price approaches this level.
Indeed, the altcoin price has risen since then. MKR is currently retesting its yearly high once again. A break above this level could help MKR price reach the next resistance level at $1,660. The weekly RSI (Relative Strength Index) is above 50. Additionally, it supports a breakout as it is in an uptrend.
The daily chart shows that MKR has been trading within an ascending triangle formation since July 14. This is a bullish pattern that often leads to breakouts. The daily RSI has broken above a descending resistance line. Moreover, it is hovering above the 50 level. This shows that the bulls have an advantage. Additionally, such RSI breakouts typically lead to similar breakouts in price action. Therefore, the altcoin price is likely to break out of this formation and move towards the $1,928 target.
Technical indicators show that the MKR price will continue to rise in the near future. The next target is $1,660, while the higher target is $1,928. This view will be invalidated if the altcoin price breaks below the support line of the ascending triangle at $1,150.
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