Will a $13 Million Inflow Propel Maker Price In A Bullish

11 wrz

Will a $13 Million Inflow Propel Maker Price In A Bullish Territory?
The Open Interest data has surged by nearly $13 Million in the last couple of sessions.
The 7 day MVRV ratio has improved from -8.41% to -1.19% indicating more investors turning profitable.

Interest in Maker (MKR) has started to pick up again as bulls showed their presence near the psychological $1500 level. MKR price restricted going below $1500 and edged towards the $1600 level in the last couple of sessions.

At the time of writing, Maker was exchanging hands close to $1578.8 recording a negative intraday development of 1.9%.

The tables may turn around and MKR may proceed on the higher side amid the improving investor sentiment. Also, few on-chain metrics have indicated a notable change which could help MKR price recover the losses.

Let's analyze what are the factors that could attract investors again in Maker and where could the Maker lead in September.
More Investors Turning Profitable As Per MVRV

Maker Price has underperformed most of the cryptocurrencies in the previous week, after recording a 5.23% weekly drawdown. The sellers were in complete domination due to which Maker slumped near a psychological $1500 level losing all the annual gains.

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However, in recent sessions buyers came back near the demand which helped Maker recover to some extent.

As per Santiment, an on-chain analytics provider the futures traders have shown interest after Maker slipped to $1500 level. The OI data has jumped from $63 Million to $76 Million today.

A 20% jump in the OI data suggests the future traders are optimistic and anticipating Maker price to turn around in the second week of September.

Additionally, the MVRV (Mean value to realized value) ratio of 7 days and 30 days curve has improved in the recent sessions. The 7 day MVRV ratio has improved from -8.4% to -1.19% whereas, the 30 day MVRV ratio has jumped form -14.9% to -10.6%.

<iframe title="Santiment Chart: MVRV Ratio (7d) (MKR), MVRV Ratio (30d) (MKR)" width="800" height="425" src="embed.santiment.net/chart?ps=maker&pt=MKR&df=2024-08-10T18:30:01.043Z&dt=2024-09-11T18:29:59.043Z&emcg=1&emhwm=1&wm=mvrv_usd_7d;mvrv_usd_30d&wax=0;1&wc=#FF5B5B;#FFCB47&ws=;" scrolling="no"></iframe>

An improvement in the MVRV ratio suggests more users turning profitable. MVRV ratio reflects the average P&L of the investors who purchased Maker in the last 7 days and 30 days. The price and MVRV ratio are positively correlated i.e. they hover in the same direction.
What’s Next: Can Maker Price Recover This Week Or Fail Again?
Over the daily chart, Maker has been maintaining a correction phase following a declining parallel channel pattern. The trend control lies in the hands of bears since mid April and Maker has eroded nearly 60% of its value in the period.

The recent sessions have observed a significant shift in the on-chain metrics. However, the price has not reacted the same way as per the data. Hence a rebound from the bottom is likely.

Also, the second reason for the price rebound is Maker has been continuously getting support from the lower boundary of the channel it has been following for the last four months. Recently, the price has retraced the lower boundary again which may invite buyers at the lower levels.

While looking on the higher side, the downside risk can not be ignored in Maker as well. The long term trend outlook is still bearish despite the bulls having taken over the short term control.

Now, if Maker slips below the $1500 level, it may again act as an open invitation for the sellers to lead again. The traders and Investors need to have a closer watch over this crucial level.