Is MKR’s 17% Rally Just a Mirage? 🤔

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  • Maker posted a sharp 17% rally, driven largely by long interest in the Futures market.
  • The key question is whether MKR can hold above $2,000 and push toward $2,400.

Maker [MKR] posted a sharp 17% gain over the past 24 hours, emerging as one of the top market performers. But let’s not get too excited just yet, folks. 🎉

Futures traders drove the surge, while spot activity showed a more cautious stance, raising the question: Is this rally sustainable? Or is it just another flash in the pan? 🌟

Futures traders fuel MKR rally

The price jump was primarily fueled by aggressive long positions in the derivatives market. It’s like a big game of chicken, where the futures traders are betting big and the spot traders are sitting on the sidelines, sipping their coffee. ☕

At press time, analysis of the Open Interest (OI) Weighted Funding Rate showed a positive reading of 0.0170%, the third-highest level this year. That’s a fancy way of saying that most open contracts on MKR come from long traders, who are paying a premium to maintain their positions. 🤑

While Futures traders led the bullish push, spot traders sold over $1 million worth of MKR during the same period. Such a significant sell-off implies that these traders are either taking profits or cutting losses to avoid potential downside. In this case, profit-taking appears to be the likely motive, given the asset’s recent strong price movement. 📈

However, AMBCrypto analysis found that a sustained bullish run is unlikely, as technical indicators suggest MKR may soon retrace. It’s like a sprinter who starts off strong but can’t keep up the pace. 🏃‍♂️

Support retest ahead?

On the daily chart, MKR has flipped its recent high of $1,962 into support. However, the price action suggests a retest of this zone could be next, especially as short-term momentum fades and selling continues on the spot side. 🔄

If MKR holds above this trendline, the structure remains intact. A bounce from $1,962 or $1,867 could open the doors for another move toward $2,400. But let’s not get ahead of ourselves. 🚪

Bollinger Bands and MFI point to rebound potential

Market indicators support this possible scenario. At the time of analysis, the Bollinger Bands showed that MKR had traded into the upper band (red) on the chart. Historically, moves into this region have led to price pullbacks—either toward the middle band (blue) or the lower support band (green). 📊

Both of these levels typically provide strong support, allowing the price to rebound and potentially form higher highs. With a decline appearing imminent, AMBCrypto found that a rebound from the middle band is highly likely due to increasing liquidity flow in the market. 💦

The Money Flow Index (MFI) has climbed to 66.62, showing healthy liquidity inflows. This keeps MKR in a bullish liquidity zone, and any dip may attract more accumulation from traders eyeing a cheaper entry. 🤑

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2025-06-15 10:23