Maker (MKR) Price Analysis: Can It Surpass the $3000 Level?

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

Maker (MKR) price encountered a 1.51% intraday decline on Friday, following a recent six-day price rally. The recent price surge 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.

The total supply of Maker is capped at 1 Million MKR tokens. Of these, nearly 500K tokens were burned in June 2023. This burning event was carried out as part of Maker’s governance proposal to reduce the total supply.

On-Chain Analysis Highlights Decreased Maker Supply on Exchanges

As per on-chain data from Santiment, the supply of Maker on exchanges dropped 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: Can MKR Surpass the $3000 Level?

After a strong 30% rally, MKR paused on Friday, trading around $2800 with a 1.51% intraday loss. The recent price rally saw MKR quickly recover from the $2600 resistance level, which broke out sharply to serve as immediate support.

If the bulls can keep the price above the $2670 level, it could lead to further gains beyond the $3000 level. However, if the bears manage to push the price below $2670, then the support might weaken, and the price could continue to fall lower.

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 might bounce back from these levels. MACD lines and signal lines had crossed above the zero line, indicating a short-term bullish continuation.