The price of Maker (MKR), the governance token of the MakerDAO protocol, has increased by 7.47% in the last 24 hours. This increase comes after Grayscale announced the launch of the MakerDAO Investment Trust on Tuesday.
Since this disclosure, Maker has also experienced other positive changes, which we will discuss in this analysis.
New Investment Vehicle Brings a Buzz to MakerDAO
On August 13, major cryptocurrency asset manager Grayscale announced the launch of MakerDAO Trust. This is the second consecutive launch in a matter of days, following its investment in two other altcoins last week.
According to the company, the trust will provide investors with exposure to MKR. Additionally, investors will have access to the on-chain credit protocol and Real-World Assets (RWA) provided by the MakerDAO ecosystem.
But MKR’s price isn’t the only metric being affected by the developments. Santiment’s on-chain data shows a noticeable increase in active addresses on the network.
Read more: What are Tokenized Real Assets (RWAs)?
Active addresses measure the level of user engagement on the blockchain. As the metric increases, users are increasingly involved in sending and receiving tokens on the network. However, a decrease indicates a lack of buying and selling among cryptocurrency holders.
Therefore, the MKR price rally appears to be related to broader market interest, not just Grayscale investments. If sustained or improved, MKR’s price could benefit from this as the rally continues.
In addition, IntoTheBlock’s data shows that the number of short-term holders has increased. Specifically, looking at addresses by holding time, the number of addresses that have purchased tokens in the last 30 days has increased by double digits.
Typically, an increase in accumulation during this period indicates confidence in the short-term potential of the cryptocurrency. However, a decrease suggests the opposite.
Therefore, the rise indicates an increase in buying pressure. Similar to the influence of the active addresses above, an increase in this number could be bullish for MKR.
MKR Price Prediction: Next Could Be $2,500
Before the MKR price recently bounced to $2,127, the token fell 38% to $1,716. At that point, MKR was oversold, according to the Relative Strength Index (RSI).
RSI measures momentum using the speed and magnitude of price changes. A reading above 70.00 indicates that the asset is overbought, while an RSI reading below 30.00 indicates that the asset is overbought.
On August 7th, the indicator was at 26.33. However, at the time of writing, it has risen to 44.07, which suggests that buyers are returning and increasing their purchases. If this continues, the price could go higher. To verify the bullish bias, the RSI needs to break above the neutral level of 50.00.
If this happens, MKR could break the resistance level located at $2,184.82. If this happens, the next level that the token could reach could be between $2,354.73 and $2,537.86.
Read more: Maker(MKR) Price Prediction 2023/2025/2030
However, if the activity on the MakerDAO network decreases, invalidation may occur. It may also occur if the bulls pull back from the MKR dip buy. In this case, the price may fall back to $1991.46.
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