MKR Surges 14% as Bulls Return, Targeting $1600

Maker (MKR) has been bucking the broader market trend, surging by 14% at the time of writing. This rally can be attributed to a growing interest from investors and traders, as well as a bullish price action observed on the daily timeframe.

Technical analysis by AMBCrypto suggests that MKR has broken out of a descending channel pattern on the daily timeframe, signaling a potential reversal from its prolonged bearish trend to a bullish phase. Based on this pattern, it is possible that MKR could rally by 50% to reach the $1,600 level in the future.

In addition to the technical indicators, on-chain data also supports the bullish outlook for MKR. A blockchain-based crypto intelligence firm, iCryptoai, recently noted that smart DEX traders and whales have been consistently accumulating MKR tokens over the past few days. The buy volume from these entities has dominated the selling volume, further bolstering the bullish case for MKR.

However, it is worth noting that some long-term holders have been cashing out their holdings, as reported by on-chain analytics firm Coinglass. Data from spot inflow/outflow revealed that exchanges have witnessed an inflow of $2.81 million worth of MKR tokens in the past 24 hours, potentially signaling a sell-off.

The intraday traders appear more confident, with Maker's Open Interest (OI) jumping by 20.5% in the past 24 hours. At press time, traders betting on the long side dominate, encouraging holders to maintain their bullish stance on the token. This might be the reason for the jump in Maker's OI.

Currently, $1,062 is where traders holding long positions are over-leveraged, with $2.20 million in long positions. Meanwhile, $1,144 is another level where short sellers are over-leveraged, currently holding $970K in short positions.

When combining these on-chain data points, it appears that bulls are back to support MKR tokens, driving a price rebound after its earlier decline. At press time, MKR was trading near $1,115 after surging over 14% in the past 24 hours. Despite all these bullish on-chain metrics, MKR's current price action suggests that