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Maker paused after registering six consecutive green days on the chart. The recent price rally added nearly 30% to its value, rising from $2300 to $3000. Furthermore, the recent price surge validates a breakout of Maker from a correction phase.
Moreover, on-chain data highlights decreased supply on the exchanges, which may trigger an imbalance in MKR. Maker was hovering near the $2800 mark when writing after a 1.51% drop.
The $2600 resistance level was broken in a sharp breakout. It may now act as support, and the price may resume higher.
Maker (MKR) serves as the governance token for MakerDAO and the Maker Protocol. These are a decentralized organization and a software platform, respectively, both built on the Ethereum blockchain.
Maker Supply on Exchanges Drops
Supply on exchanges has decreased by nearly 14% from its peak of 128.3K on July 9th.
This reduction in the token’s availability across exchange wallets is generally seen as a bullish indicator of its price. That’s because it lowers the volume of tokens available for sale.
As of today, the supply of Maker on exchanges has dropped to 111K tokens. The reduced supply may trigger an imbalance in the MKR price. According to data from Santiment, the total number of holders has surged from 100.6K to 100.9K in a month.
Furthermore, the intraday transaction volume has dropped by 41% to $96.35 Million, along with a mild drop in the price. The volume to market cap ratio at 3.76% suggests low volatility.
Maker Price Technical Analysis
MKR paused after a strong 30% rally from $2300 to $3000. The most recent support is nearly $2670, which was the previous resistance. Now, if the bulls can stay above $2670, it could resume further gains beyond the $3000 level.
From a technical standpoint, MKR is now hovering comfortably above the 20, 50, and 200 EMAs. It suggested a positive outlook in the short-term as well as long term.
The key EMAs may act as dynamic support for the MKR price, and the price may bounce back. MACD lines and signal lines had crossed above the zero line, indicating a short-term bullish continuation.
Can Maker Surpass the $3000 level?
MKR recently surged nearly 30%, breaking out of a correction phase. It was hovering around $2800 after a 1.51% intraday decline.
Moreover, on-chain data shows a 14% drop in MKR supply on exchanges, now at 111K tokens. The drop in the supply may turn out to be a bullish scenario for Maker, and the price may surpass $3000.
The number of holders increased from 100.6K to 100.9K. MKR is hovering above key 20, 50, 200 day EMAs, suggesting a positive outlook. The technical indicators MACD lines indicate short-term bullish continuation.