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- 1 A resurgence in the wider market may trigger a surge in Maker’s value, potentially surpassing the $3000 threshold.
- 2 The growing social dominance reflects a heightened engagement of MKR crypto among the user base.
Maker (MKR) crypto appears to be pivoting towards an upward trend, potentially exiting its correction period as the wider market shows signs of recovery. The rebound in its price around the demand zone suggests a growing enthusiasm among investors.
Additionally, the daily chart showcases an intriguing channel pattern, with the price currently at a critical threshold. The rise in trading volume and social attention points to a potential breakout.
Yet, there are obstacles at higher price levels that could dampen the chances of such a breakout. Let’s delve into a more detailed analysis, considering all these elements.
Social Volume Indicates Increased User Engagement
According to data from Santiment, there has been a noticeable uptick in social dominance and volume, suggesting a surge in user engagement with the MKR crypto. This heightened activity could signal a greater likelihood of a price breakout.
Moreover, social dominance and volume are metrics that gauge the cryptocurrency’s prominence, activity level, and demand within the community, highlighting its popularity and the intensity of discussion it generates among enthusiasts.
Is Maker Poised for a Bullish Breakout?
From a technical point of view, Maker crypto has experienced a corrective trend over the past two months. However, this could conclude with a successful breakout from the descending triangle pattern observed on the daily chart.
Presently, the price is hovering near a crucial area, with a definitive trend yet to be established. On the upside, the 50-day Exponential Moving Average (EMA) and the significant $3000 level could serve as resistance. Overcoming these could herald the start of a new bullish cycle for the cryptocurrency.
Conversely, if the bears regain control and the price breaks below the monthly lows, it may head straight towards the annual lows.
Conclusion.
Maker (MKR) crypto has shown signs of a bullish reversal as the broader market is recovering. Investor interest seems to be rising, as indicated by the price rebound in the demand zone and a notable channel pattern on the daily chart.
Moreover, the increased trading volume and social metrics suggest a breakout might be imminent. Data from app.santiment.net confirms a spike in user engagement.
From a technical outlook, MKR is at a decisive point after a two-month correction, with a breakout from a descending triangle pattern likely. The recent hurdle lies at the 50-day EMA and the $3000 mark. However, if bears dominate, MKR could revisit yearly lows.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
