Maker (MKR) has been on an impressive tear over the past week, rallying more than 44% in value and defying broader market trends. Despite large wallet investors and whales taking profits amidst the surge, technical indicators and on-chain metrics are painting a bullish picture for the DeFi token as it looks to extend its rally in the coming days.
Technical and Derivatives Data Point to Further Upside
Recent data from derivatives platform Coinglass highlights a significant spike in open interest for MKR, with figures reaching $116.85 million as of February 21. This surge in open interest is indicative of growing speculative activity and bullish sentiment among traders. Meanwhile, the total value of assets locked in MKR has climbed to $5.675 billion, according to DeFiLlama, underscoring the rising demand and relevance of the token in the DeFi ecosystem.
Key technical indicators further support the bullish case. Maker’s price has broken out of its previous downward trend since February 12 and is currently trading around $1,473. The token faces resistance at $1,632 and $2,050—levels previously tested during its upward run between October 26 and December 4. Notably, the Moving Average Convergence Divergence (MACD) continues to show green histogram bars above the neutral line, while the Relative Strength Index (RSI) is reading 74 and trending upward. These metrics suggest that a rally pushing MKR to test the $1,632 resistance, roughly a 15% move, is within reach.
On-Chain Insights: Capitulation and Whale Activity
On-chain analysis reveals a mixed sentiment among MKR holders. Data from IntoTheBlock indicates that about 30% of wallet addresses are currently holding unrealized losses, which often signals capitulation—a precursor to potential recovery. In contrast, 65.55% of MKR token holders are in the green, suggesting that the broader investor base is positioned for further gains.
Whale activity provides additional context to the rally. A notable transaction from a wallet identified as inveteratus.eth saw the sale of 1,230 MKR for 1.78 million USDC, locking in a 30% profit amounting to $418,000 in less than a month. Historical data shows that the same whale had previously taken a $1.86 million profit from MKR trades in April 2024, with cumulative profits now totaling $2.27 million. Despite these profit-taking moves by large holders, MKR’s price remains resilient, indicating strong underlying demand.
Governance Drama and Token Burn Boosting Sentiment
In addition to positive market and technical signals, recent governance developments are also influencing MKR’s trajectory. The rebranded Sky Protocol (formerly MakerDAO) has been the subject of heated debate following a fast-tracked governance proposal. The proposal—alleged by some community members to represent a potential governance attack—sought to relax borrowing restrictions on MKR. Although the emergency proposal has passed, it remains subject to a timelock period, adding an element of uncertainty to the governance narrative.
Amidst these dynamics, a significant catalyst supporting MKR’s price is the recent token burn. A tracker identified a burn event involving 14,000 MKR tokens, worth approximately $16.9 million. With tokens permanently removed from circulation, the reduction in supply is likely to bolster price gains further by easing selling pressure.
Maker’s impressive rally over the past week, supported by robust derivatives activity, strong on-chain metrics, and key technical indicators, sets the stage for a potential 15% move as the token approaches critical resistance levels. Despite profit-taking by whales and emerging governance controversies, MKR’s steady price action and significant token burn events underscore a resilient market sentiment. As traders and investors closely monitor these developments, all eyes will be on Maker to see if it can extend its rally in the days ahead.
