Why is Maker (MKR) Coin Price Going Up Today?

Key Takeaways

  • Maker hits May 2022 high after latest price rally.
  • The gains appear amid heightening on-chain activity.
  • However, the token’s upside bias may get exhausted in October 2023.
Why is Maker (MKR) Coin Price Going Up Today?
Why is Maker (MKR) Coin Price Going Up Today?

YEREVAN (CoinChapter.com) — Maker (MKR) coin price is up on Sep. 28 amid growing on-chain activity. Interestingly, no concrete fundamentals have backed the upside move.

Maker price performance in the last 24 hours
MKR/USD price performance in the last 24 hours. Source: CoinStats

Why is Maker Coin Rising?

Maker’s price has grown 2.90% to $1,542 on Sep. 28, its highest level since May 2022. The rally is part of a prevailing upside momentum that has pushed the Maker token north by 22.50% in the last three days.

The bout of Maker’s price growth coincides with its active addresses hitting a 10-week high. Active addresses reflect the number of unique MKR addresses interacting with the Maker network in a particular timeframe.

Maker daily active addresses vs. MKR price
Maker daily active addresses vs. MKR price. Source: Santiment

The MKR price bump precedes a minor growth in the Maker coin supply across its richest investor cohorts. That includes entities holding between 100,000 MKR and 1 million MKR tokens (black wave in the chart below), whose token holdings have grown over 0.25 since Sep. 20.

Similarly, the supply held by the 1,000-10,000 MKR balance cohort (yellow) has risen 1% in the same timeframe, albeit coinciding with a similar drop in the supply held by the 10,000-100,000 MKR balance cohort (red).

Maker supply distribution among whales
Maker supply distribution among whales. Source: Santiment

In other words, one cohort may have absorbed the distribution rate of the other cohort.

Maker Coin Transfers to Crypto Exchanges Boom

The MKR price rally period coincides with increasing transfers to crypto exchanges (the green spike in the chart below).

MakerDAO balance across all crypto exchanges
MKR balance across all crypto exchanges. Source: CoinGlass

These inflows suggest that MKR traders could dump their holdings in the future, which, in turn, indicates price correction in the absence of strong buy walls.

MKR Price Technical Analysis

Technically, the MKR price eyes a 20% correction by October 2023 per a fractal indicator pattern.

The fractal involves an ascending channel pattern, a daily relative strength index (RSI), and a 50-day exponential moving average (50-day EMA; the red wave). As such, in recent cases, MKR’s upside bias exhausts when its price hits the channel’s upper trendline and its daily RSI turns overbought.

When that happens, the price corrects toward the support confluence comprising the channel’s lower trendline and 50-day EMA, as shown below.

MKR price daily performance chart
MKRUSD daily price chart. Source: TradingView

As of Sep. 28, the Maker’s daily RSI has turned overbought after crossing 70.

Meanwhile, the MKR price eyes a run-up toward the channel’s upper trendline near $1,670. The token may correct toward the 50-day EMA-lower trendline support confluence near $1,210 in October 2023, down 20% from current levels.

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