Maker Price Analysis: MKR Technical Breakout Begins 149% Bullish Comeback to Record Highs
- Maker came out of an ascending triangle pattern, ready for liftoff to $6,700.
- As the MVRV ratio resets, investors are encouraged to increase their positions.
- A drop in Marker’s network growth is a bearish signal likely to deter the expected breakout.
Maker lifted toward $4,000 but failed to close the gap due to the momentum fizzling out near $3,730. On the downside, support at $2,700 was tested but not broken. Buyers rushed into action and took control of the trend, bolstering MKR upward. At the time of writing, Maker trades at $3,405 amid calls to complete the recent triangle breakout eyeing $6,700.
Maker Bulls Battle to Secure Technical Breakout
The daily chart illustrates the formation of an ascending triangle. This is a bullish pattern that mainly forms amid an up-trending market. The pattern signifies a consolidation period before a breakout comes into the picture.
Since ascending triangles are bullish continuation patterns, breakouts are expected above the x-axis. Increased trading volume affirms the breakouts with precise targets measured from the highest to lowest points. For example, Maker’s recent breakout eyes 149% liftoff to $6,700 as illustrated on the chart.
MKR/USD Daily Chart
The market value realized value (MVRV) ratio by Santiment shows that investors anticipate the price to continue with the uptrend. Recently, the profit or loss ratio hit levels slightly above 60%. However, investors offloaded their bags to profit, leading to the price dropping to $2,700. At the time of writing, the ratio holds at 38% and appears to be resuming the uptrend. As investors rejoin the market, Maker is likely to strengthen the uptrend toward $6,700.
Maker MVRV Model
Looking at the Other Side of the Picture
Maker’s network growth has dwindled in the last few days, according to Santiment’s on-chain metric. The decline follows a price drop from highs above $4,000 to lows around $2,700. As the number of new addresses joining the network reduces, selling pressure becomes more vigorous.
Maker Network Growth Chart
Thus, price correction comes into play. For now, Maker has recorded on average roughly 580 addresses per day compared to 880, a 30-day high. If the network growth fails to improve, Maker will likely increase the breakdown intensity.