Maker DAO’s MKR has recorded a big push amid the slight uptick in the broader cryptocurrency market. Yesterday, September 25, the token rose from a low of $1,265 to a high of $1,343.
Although most tokens struggle to recover, MKR consolidated on its upswing with an impressive 5% 24-hour increase. MKR trades at $1335, striding to conquer the critical resistance at $1,350.
Its latest strides show buyers are in control, and their activity could facilitate more gains for MKR. But is the bullish momentum strong enough to push MKR to the $1,500 price mark? Let’s find out.
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MKR Stands Among Top-gaining Cryptocurrencies
MKR ranked number one among today’s top-gaining cryptocurrencies, gapping Chainlink and Bitcoin Cash by 2%. This comes while the overall crypto market cap recorded a slight uptick of 0.63%, with the trading volume down 4%, indicating a decline in trading activity. However, amid the sparse buying activities in the general market, MKR recorded a 47% increase in trading volume.
This observation depicts increased buy action in the Maker market. But while this increased buying strength could fuel the coin’s price rally, it’s important to identify the factors behind it.
The buzz around the new proposal to deploy Spark Protocol on zkSync Era Mainnet has boosted investor sentiment. This proposal will include wETH, rETH, wstETH, and DAI as initial collaterals for borrowing on the Spark Protocol. Also, if adopted, the proposal will set a 2 million liquidity goal to spur Spark Protocol’s growth on zkSync.
Already, 100% of the Maker community voted yes to launching Spark on Gnosis Chain. This development makes DAI, Maker DAO’s stablecoin, the native gas token of Gnosis Chain. In addition, it allows users to earn increased yield when lending their DAI tokens.
Given this benefit, this development yielded positive sentiment in the Maker ecosystem. This positive sentiment must have translated into increased demand for MKR, the governance token of the Maker protocol, a plausible reason behind the surge in trading activities.
MKR Strives To Conquer The Key Resistance Level: Is $1,500 Possible?
The daily chart shows that MKR has formed two consecutive bullish candlesticks around the $1,300 price. This set-up depicts high token demand and increased buying strength around this zone.
The increased buy actions have pushed MKR above a key support level of $1,086 and a critical moving average of $1,166. But, the bulls met strong opposition at the $1,354. The sell activities from profit-taking traders, evident in forming two bearish candlesticks at this level, hinder further strides. Furthermore, MKR has remained a few pipes below $1,354 since opening today’s trading session at $1,338.
However, the Relative Strength Index, which increased from 63 to 64.97, approaching the overbought area, signals rising buying strength. It suggests that more buyers are entering longer positions, ready to counter the selling pressure resisting rally.
Suppose buyers maintain the ongoing momentum; a breakout above $1,354 and a move towards $1,500 before the day ends is possible.
Featured image from Pixabay and chart from TradingView.com