Interest in Maker (MKR) has started to pick up again as bulls showed their presence near the psychological $1500 level. In just the last two sessions, positions worth $13 Million were made, is it enough to help MKR go for the $1600 mark?
MKR price restricted going below $1500 and edged towards the $1600 level in the last couple of sessions.
At the time of writing, Maker was exchanging hands close to $1578.8, recording a negative intraday development of 1.9%.
The tables may turn around and MKR may proceed on the higher side amid the improving investor sentiment. Also, few on-chain metrics have indicated a notable change which could help MKR price recover the losses.
Let’s analyze what are the factors that could attract investors again in Maker and where could the Maker lead in September.
More Investors are Turning Profitable as Per MVRV
Maker Price has underperformed most of the cryptocurrencies in the previous week, after recording a 5.23% weekly drawdown. The sellers were in complete domination due to which Maker slumped near a psychological $1500 level losing all the annual gains.
However, in recent sessions buyers came back near the demand which helped Maker recover to some extent.
As per Santiment, an on-chain analytics provider the futures traders have shown interest after Maker slipped to $1500 level. The OI data has jumped from $63 Million to $76 Million today.
A 20% jump in the OI data suggests the future traders are optimistic and anticipating Maker price to turn around in the second week of September.
Additionally, the MVRV (Mean value to realized value) ratio of 7 days and 30 days curve has improved in the recent sessions. The 7 day MVRV ratio has improved from -8.4% to -1.19% whereas, the 30 day MVRV ratio has jumped form -14.9% to -10.6%.
An improvement in the MVRV ratio suggests more users are turning profitable. MVRV ratio reflects the average P&L of the investors who purchased Maker in the last 7 days and 30 days. The price and MVRV ratio are positively correlated i.e. they hover in the same direction.
What’s Next: Can Maker Price Recover This Week or Fail Again?
Over the daily chart, Maker is in an extended correction phase following a declining parallel channel pattern. Bears have been controlling this trend since mid-April. Maker lost nearly 60% of its value in the period.
The recent sessions have observed a significant shift in the on-chain metrics. However, the price has not reacted similarly. Hence a rebound from the bottom is likely.
Also, the second reason for the price rebound is Maker has been continuously getting support from the lower boundary of the channel it has been following for the last four months. Recently, the price has retraced the lower boundary again which may invite buyers at the lower levels.
While looking on the higher side, the downside risk can not be ignored in Maker as well. The long term trend outlook is still bearish despite the bulls having taken over the short term control.
Now, if Maker slips below the $1500 level, it may again act as an open invitation for the sellers to lead again. The traders and Investors need to have a closer watch over this crucial level.
