Maker: What you need to know about MKR’s November moves

Maker’s exchange reserve and exchange supply ratio hits a yearly high.
MKR has surged by 30.8% over the past week.

As a seasoned analyst with years of experience navigating the volatile crypto markets, I find myself cautiously optimistic about Maker [MKR]. While it’s encouraging to see a 30.8% surge over the past week and significant gains on both weekly and monthly charts, the current price remains significantly below its ATH.

Following the U.S. presidential election, there’s been a significant surge in the cryptocurrency market. Bitcoin [BTC] has reached a brand-new all-time high of $89k, driving this bullish trend. As a result, many alternative coins (altcoins) and meme coins have also witnessed impressive heights.

Nevertheless, certain digital assets have experienced a slight price increase even as they continue to exhibit a generally negative outlook. An example of this trend can be seen in Maker [MKR], an altcoin that has recently shown signs of a modest price upturn.

Currently, as I’m typing this, Maker is being exchanged at approximately $1490. This represents a 1.90% rise in daily trading. Moreover, the digital currency has seen an increase of 30.8% in its weekly performance and a growth of 11.38% over the past month.

As a researcher, I’ve observed that MKR has made substantial progress, but it’s still roughly 76.56% below its All-Time High (ATH) achieved four years ago. This suggests that the altcoin is underperforming significantly, with many investors maintaining a bearish stance. This trend was clearly demonstrated by a surge in the exchange reserve and supply ratio.

Maker’s exchange reserve hits yearly high

Based on AMBCrypto’s examination of Cryptoquant’s data, the reserve for Maker was peaking annually as we speak.

Over the last seven days, we’ve noticed a significant increase in the amount of altcoins held on exchanges, following a minor decline towards the end of October.

The increase in exchange reserves indicates growing uncertainty among investors, suggesting they are becoming less optimistic. This could be a warning sign, as investors seem to expect a decrease in value and are positioning themselves to sell, aiming to limit potential losses.

The influx into exchanges is also evident through a surge in the exchange’s supply-to-demand ratio, which has reached its highest point this year.

When these two indicators reach their highest point in a year, it suggests that the market is incredibly pessimistic and many investors expect the prices to drop.

What it means for MKR price charts

Typically, an increase in exchange reserves relative to the exchange supply suggests that investors are pessimistic or bearish. Despite recent price increases, the market may still be hesitant about a possible bull run because it’s not yet fully optimistic.

This was further evidenced by the fact that ADX has been rising while RVGI has declined.

On a weekly basis, the ADX value has risen from 31 to 35. This implies that the upward trend may be weakening as the downward trend gains strength.

The Relative Vigor Index (RVGI) demonstrates a similar occurrence as a bearish cross-over, where the signal line goes beneath the RVGI. This indicates that the upward trend may be weakening in power and intensity.

In such cases, this situation serves as a sign for selling, as sellers strive to take charge. Consequently, when this happens, investors often choose to sell short.

Read Maker’s [MKR] Price Prediction 2024–2025

Given these signals suggesting a possible shift in direction, it seems that MKR might experience a drop prior to the market becoming robust enough to initiate another upward trend.

If pessimistic views persist, Maker’s price might stabilize near $1320. Conversely, if optimism continues and the market maintains its recent growth, Maker could challenge the $1600 resistance point.

2024-11-13 10:15

Maker’s exchange reserve hits yearly high

What it means for MKR price charts

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