MKR is making a strong comeback after months of decline, driven by renewed interest from whales and smart money investors. The token surged 11% to an intraday high of $1,197 on February 19, pushing its market cap closer to the $1 billion mark. Trading volume also saw a notable spike of 28%, reaching $189 million, with a circulating supply of 845,384 tokens.
MKR had been in a downtrend since early December, when it was trading near $2,400. While the token is still down 81% from its all-time high of $6,282, it has gained over 24% in the past week, signaling a strong recovery.
Whale Accumulation and Smart DEX Traders Drive Price Surge
Blockchain analytics firm iCryptoai recently highlighted a consistent buying pattern among Smart DEX Traders and whales, with buy volume significantly outpacing sell volume. This trend is viewed as a bullish indicator by market participants.
Cumulative Volume Delta (CVD) data further supports this bullish outlook, showing that MKR is in the Smart DEX Traders’ Accumulation Zone. Historically, when CVD rises alongside price and trading volume, it often signals continued upward momentum.
Open interest (OI) for MKR has also surged 20% in the past 24 hours, according to CoinGlass data. The long/short ratio currently stands at 1.028, indicating a dominance of long positions. Such a rise in OI suggests growing bullish sentiment among futures traders, which could further support price gains if buying pressure remains strong. However, excessive leverage could increase the risk of a long squeeze.
Sentiment and Technical Indicators Show Bullish Momentum
Santiment data reveals that weighted social sentiment for MKR has flipped positive since February 17, with most discussions on social platforms reflecting optimism about the token’s price potential. Similarly, CoinMarketCap’s community sentiment tracker indicates that 92% of over 51,000 traders remain bullish on MKR.
On the technical front, the 1-day MKR/USDT chart suggests sustained bullish momentum. The MACD lines are trending upwards, with the MACD line positioned above the signal line, indicating continued buying pressure.
The Aroon indicator also confirms the uptrend, with Aroon Up at 100% and Aroon Down at 28.57%, signaling strong bullish momentum and minimal downward pressure. Meanwhile, the RSI stands at 58, suggesting there is still room for further gains, particularly if open interest continues rising and technical signals remain positive.
MKR’s Next Price Target and Key Resistance Levels
MKR could extend its rally in the coming days before a potential cooldown. Analysts have pointed out a descending channel pattern on the 12-hour chart that has been forming since December 4. The recent breakout above the channel’s upper boundary suggests the token could see further gains of up to 30%, according to one analyst’s prediction.
Key resistance now lies at $1,220, according to analyst Ali Martinez, who cited the TD Sequential indicator. This indicator recently flagged a buy signal on the daily chart, suggesting waning selling pressure and a potential price rebound.
Conclusion
At press time, MKR was trading at $1,170 per coin, maintaining its upward momentum. With increasing whale accumulation, bullish technical signals, and growing investor confidence, MKR’s rally could continue in the short term, potentially testing key resistance levels in the days ahead.
Crypto News 10
Headline:
Bitcoin’s liquidation profile follows completely different pattern than 2021, analysts say
Suggested Headlines:
· Analysts: Bitcoin’s Liquidation Trends in 2024 Differ Sharply from 2021
· Bitcoin Liquidation Profile Shifts: How 2024 Differs from 2021
· New Market Cycle? Bitcoin’s Liquidation Pattern Diverges from 2021
· Bitcoin Liquidation Trends Show Major Shift Compared to 2021, Say Analysts
· Analysts Spot Key Differences in Bitcoin’s Liquidation Profile vs. 2021
News Content:
Bitcoin’s liquidation events no longer mirror the sharp swings of 2021, as lower leverage in the system has led to a different trading environment. According to blockchain firm Matrixport, despite daily liquidations occasionally reaching $600 million, Bitcoin prices have managed to find a bottom with minimal follow-through.
In a February 19 research note, Matrixport analysts highlighted a stark contrast between the current cycle and the high-leverage markets of 2020 and 2021. During the previous bull market, excessive leverage triggered extreme volatility, resulting in significant price swings. However, the present cycle is seeing a more controlled response to liquidations.
Lower Leverage and Strategic Trading
Independent analyst Markus Thielen attributes this change to relatively low leverage levels and a more strategic approach by traders in setting stop losses. The approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has also reinforced market confidence, reducing the likelihood of panic-driven sell-offs.
With Bitcoin no longer perceived as a high-risk asset, the focus has shifted from concerns over its potential collapse to evaluating how low it might correct during periods of market stress. While liquidation-driven sell-offs appear more contained, risks remain in the broader market landscape.
Bearish Signals in Bitcoin Market Indicators
Despite the more stable liquidation environment, analysts point to the Inter-exchange Flow Pulse indicator, which tracks Bitcoin movement between spot and derivatives markets. Typically, increased BTC inflows into derivatives platforms signal bullish momentum. However, the current readings indicate bearish sentiment, suggesting Bitcoin could face resistance before any significant breakout.
Bitcoin’s liquidation trends have evolved significantly since the last bull market. Lower leverage, improved trading strategies, and the introduction of spot Bitcoin ETFs have all contributed to a more stable environment. However, bearish signals from key indicators suggest that challenges remain before Bitcoin can push toward new highs. Investors should closely monitor market trends to assess potential resistance levels in the coming weeks.
