- Maker recently reacted off a major support zone where hundreds of thousands of units were purchased.
- Some traders, however, are taking profits—a move that could impact MKR’s potential market movement.
In the past 24 hours, buyers have shifted sentiment after previously selling a large portion of the asset over the past month. This renewed buying activity has led to a 1.66% price increase.
Large buy orders could trigger a rally
According to AMBCrypto’s analysis, this price jump could mark the beginning of a further rally, with an additional 41% upside as Maker [MKR] aims to retest a key resistance level at $1,800.
The In/Out of the Money Around Price (IOMAP) indicator, which helps identify potential demand and supply zones, shows that MKR has reacted off a key demand area that could trigger a major rally.
Source: IntoTheBlock
This zone, located between $1,220.29 and $1,258.43, saw a record 237,880 MKR traded, worth approximately $299 million—a significant volume that fueled the recent uptrend.
When such high-volume accumulation occurs, a corresponding increase in price and volume often signals an impending market rally.
On the chart, MKR appears ready to attempt a bullish breakout from a symmetrical triangle, following the large buy orders. Based on the analysis, if the asset breaks through this resistance, it could surge 41% to reach $1,800.
Source: TradingView
A symmetrical triangle pattern forms when converging support and resistance lines create a consolidation phase. Once price action breaks out, it typically leads to a strong directional move.
Derivatives traders are going long ahead of the rally
Market sentiment remains bullish, particularly in the derivatives market, where traders are opening more long positions in anticipation of a breakout.
Data from Coinglass shows that MKR’s Open Interest (OI) has steadily risen, reaching $87.80 million in the past 24 hours. This increase indicates more unsettled derivative contracts in the market.
Source: Coinglass
A study of the rising Funding Rate suggests that these contracts favor long positions.
The aggregated Funding Rate, which climbed to 0.0088%, implies that long traders are paying a premium to short sellers to maintain their positions—behavior typically observed in bullish market phases.
Profit-taking could slow MKR’s growth
While the broader market remains bullish, some spot traders are taking profits, as indicated by the exchange netflow turning positive.
Source: IntoTheBlock
The netflow metric, which tracks buying and selling activity within a given period, shows that 989.63 MKR (worth $1.2 million) was sold.
However, this selling pressure is relatively low compared to the previous days’ buying activity, suggesting that traders are securing profits while keeping the majority of their positions intact.
It’s important to note that if selling activity in the spot market continues and more assets are offloaded, it could indicate a shift toward bearish sentiment rather than a simple profit-taking phase.
However, for now, MKR remains largely bullish, targeting $1,800.
