Why Maker (MKR) Can Reach $2,000 as New Year Fever Begins

Maker (MKR), the governance token of the MakerDAO has been subject to another round of accumulation, Lookonchain revealed. According to the Lookonchain, three new wallets bought 18.6 million worth of MKR in the last seven days.

The “smart money handle” also mentioned that the buyer(s) withdrew tokens from Binance and sent them into self-custody. The withdrawal from the exchange suggests the buyers plan to keep MKR in anticipation of a price increase.

More Increase for MKR in 2024

The accumulation happening a day before 2023 ends was a sign that MKR might have bullish tendencies going into 2024. Previously, Coin Edition had mentioned that some wallets bought some tokens including MKR.

Since then, the cryptocurrency price has increased by 10.46% while trading at $1.582. From the daily chart, MKR was affected by selling pressure for some parts of December. However, sellers got exhausted on December 19.

Consequently, bulls capitalized on this fatigue at $1,281 while helping MKR beat the $1,455 resistance. Indications from the Moving Average Convergence Divergence (MACD) showed that the cryptocurrency had tendencies to close in on $2,000.

At the time of writing, the MACD was 29.10. This was also backed by the crossover of the 12-day EMA (blue) and 26-day EMA (orange). This is considered a bullish divergence. However, the state of the On Balance Volume (OBV) needs to change if MKR aims to hit $2,000.

MKR/USD Daily Chart (Source: TradingView)

A Golden Cross for the Token

The OBV measures buying and selling pressure while adding volume on uptrends and subtracting it on downtrends. Furthermore, the OBV reading needs to increase to confirm MKR’s bullish potential in the short term.

If accumulation continues to increase, it could trigger an increase in the OBV. In turn, the MKR price could move higher while eyeing a 40% increase to $2,000.

Concerning the price action, Coin Edition also checked the Exponential Moving Average (EMA). But this time, the focus was on the long-term potential. At press time, the 50 EMA (blue) had closed above the 200 EMA (yellow).

The upward crossover signals a golden cross. It was also a sign that the market could be bullish for MKR instead of bearish when 2024 begins. However, it is noteworthy to mention that the potential jump in price would come with some challenges.

MKR/USD Daily Chart (Source: TradingView)

For instance, if MKR finally hits the $2,000 psychological zone, it could pull back. However, if the correction is higher than 20%, that could be an entry signal for traders who might have missed out on the pump.