• Amidst weak volatility seen on MKR recently, on-chain analysis gives a clue to an impending breakthrough.
  • Charts show that technical indicators also agree with the long-term bullish outlook for MKR.

Despite the stagnant outlook seen in Maker’s price action (MKR), signals from technical and on-chain indicators have maintained that it is poised for an uptrend. It goes without saying that this tardiness in the cryptocurrency’s reaction has stretched a little more than expected.

Maker DAO price prepares for a bullish impulse

According to on-chain metrics tracker, Dune analytics, a correlation between the price and the total value of tokens that have been locked seems to signal a bullish trend. Historical data show MKR to have made a considerable increase from $432 seen on January 1 to $512, where it currently sits, accounting for just an 18.5% increment. 

TVL vs price per day

It could also be observed that the total value of tokens locked within this period has skyrocketed by over 1000%, from $210 million to $2.3 billion. The discrepancy between the price growth and these tokens, which have been put out of circulation, suggests a rally could be in sight as the growing scarcity of MKR is expected to lead to a new uptrend.

A tool from Santiment, another provider of on-chain market insights, shows that MKR’s cost has a track record of responding to spikes in the number of daily active addresses. On August 13, a surge to $797 was accompanied by an eruption in holders’ activities on the blockchain. Upon observation, this market behavior implies more room for an impending upswing.

Daily transaction vs price

Daily transaction vs price

Following MKR’s rise above $790 on August 13, the governance token has returned most of its gains to the market. After a correction that saw it plummet by 44% over the next 47 days. Since then, there has been a slight return, which has seen the token trading between $490 and $590.

Maker DAO US dollar price chart

MKR/USD daily chart

The chart pattern seems to be enclosed within the parallel channel, meaning a potential rebound from the lower boundary to the upper edge. A slight upward inclination of the relative strength index (RSI) indicators confirms this bullishness as it currently rests within the midpoint.

 

(Excerpt) Read more Here | 2020-12-10 17:33:00
Image credit: source

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