Maker DAO’s MKR has experienced significant growth in the broader cryptocurrency market. On September 25, the token increased from a low of $1,265 to a high of $1,343.
While most tokens struggle to recover, MKR has seen a 5% increase in the past 24 hours, currently trading at $1,335. It is pushing to surpass the critical resistance at $1,350.
The recent growth indicates a strong presence of buyers, which could result in further gains for MKR. The question remains: will this bullish momentum be enough to push MKR to the $1,500 price mark?
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MKR Stands Among Top-gaining Cryptocurrencies
MKR currently holds the top position as one of the highest-gaining cryptocurrencies of the day, surpassing Chainlink and Bitcoin Cash by 2%. Despite an overall increase of only 0.63% in the crypto market cap and a 4% decrease in trading volume, MKR has experienced a 47% increase in trading volume.
This observation indicates increased buying activity in the Maker market. However, it is crucial to identify the factors behind this surge.
The buzz surrounding the new proposal to deploy the Spark Protocol on the zkSync Era Mainnet has positively impacted investor sentiment. The proposal involves wETH, rETH, wstETH, and DAI as initial collaterals for borrowing on the Spark Protocol. Additionally, the proposal sets a 2 million liquidity goal to stimulate Spark Protocol’s growth on zkSync if adopted.
Furthermore, 100% of the Maker community voted yes to launch Spark on Gnosis Chain. This development makes DAI, Maker DAO’s stablecoin, the native gas token of Gnosis Chain and allows users to earn increased yield when lending their DAI tokens.
These positive developments have generated a favorable sentiment within the Maker ecosystem, potentially driving the increased demand for MKR, the governance token of the Maker protocol, which could explain the surge in trading activity.
MKR’s price currently hovers at $1,335 in the daily chart. | Source: MKRUSD price chart from TradingView.com
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 range. This pattern indicates a high demand for the token and increased buying strength in this zone.
As a result of the increased buying activity, MKR has surpassed a key support level of $1,086 and a critical moving average of $1,166. However, the bulls faced strong resistance at the $1,354 level. Profit-taking traders caused a formation of two bearish candlesticks at this level, hindering further progress.
Additionally, MKR has remained slightly below $1,354 since the beginning of the trading session, opening at $1,338 today.
Nevertheless, the Relative Strength Index (RSI) has increased from 63 to 64.97, approaching the overbought area. This upward trend suggests a rise in buying strength, indicating that more buyers are entering longer positions to counteract the selling pressure.
If buyers can maintain the current momentum, a breakout above $1,354 and a move towards $1,500 could be possible before the day ends.
Featured image from Pixabay and chart from TradingView.com