Maker Surges 17% on Bullish Sentiment, Faces Spot Market Sell-Offs

Maker (MKR) has experienced a significant surge, rising 17% in the last 24 hours. This rally is primarily driven by strong long interest in the market, sparking discussions about its sustainability above the critical $2,000 level. Despite this upward momentum, spot market sell-offs exceeding $1 million indicate cautious profit-taking among traders, raising questions about the durability of MKR’s upward trajectory.

According to COINOTAG analysis, while Futures traders remain bullish with a high Open Interest Weighted Funding Rate, technical indicators suggest a potential retracement could be imminent. This divergence between the bullish sentiment in the Futures market and the cautious profit-taking in the spot market underscores a complex dynamic at play.

Maker’s recent price surge is largely attributed to aggressive long positioning within the market, where traders are paying premiums to maintain their bullish bets. The Open Interest (OI) Weighted Funding Rate currently stands at a notable 0.0170%, indicating strong confidence among traders. However, spot market activity reveals a contrasting narrative, with traders offloading MKR, likely capitalizing on recent gains. This divergence underscores a cautious sentiment among holders, possibly anticipating short-term volatility or a price correction.

On the daily timeframe, MKR has successfully converted its recent high of $1,962 into a support level, a critical development for maintaining bullish momentum. However, the price action suggests a potential retest of this support zone may occur as short-term momentum wanes and spot selling persists. If MKR maintains support above $1,962 or even the lower trendline near $1,867, it could preserve its bullish structure and set the stage for a renewed push toward the $2,400 resistance level. Traders should monitor these key zones closely for signs of strength or breakdown.

Market momentum indicators provide additional context to MKR’s price dynamics. The Bollinger Bands reveal that MKR has recently touched the upper band, a zone historically associated with short-term pullbacks toward the middle or lower bands, which often act as support. Simultaneously, the Money Flow Index (MFI) stands at 66.62, indicating robust liquidity inflows and sustained buying interest. This combination suggests that any short-term dip could attract renewed accumulation, supporting a potential rebound and continuation of the uptrend.

In conclusion, Maker’s recent 17% rally, powered by market enthusiasm, highlights strong bullish sentiment but is tempered by spot market profit-taking and technical signals pointing to a possible retracement. Key support levels at $1,962 and $1,867 will be critical in determining whether MKR can sustain its momentum and target the $2,400 resistance. Traders should remain vigilant, balancing optimism with caution as market dynamics evolve.