MKR Token Surges 7% Amidst Bearish Market, Eyes 50% Rally

MakerDAO's MKR token has defied the current bearish market trend, surging by 7% in the past 24 hours, outperforming major cryptocurrencies. As of February 18, 2025, MKR is trading near $1,065, with a 10% increase in trading volume, indicating growing interest and confidence from traders and investors.

Technical analysis suggests that MKR has been moving in a downtrend, following a descending channel price action pattern. However, the recent upside momentum has brought the price to the verge of breaking out of this descending pattern. If MKR breaches this pattern and closes a daily candle above the $1,070 level, there is a strong possibility it could soar by 50% to reach the $1,600 level in the future. During the rally, MKR may face slight resistance near $1,100, as the 200 Exponential Moving Average (EMA) on the daily time frame currently lies near that level.

Despite the bullish price action and recent price jump, on-chain metrics indicate a potential sell-off. Data from the spot inflow/outflow reveals that exchanges have witnessed an inflow of $1.85 million worth of MKR tokens in the past 24 hours, suggesting increased selling pressure. This could be due to long-term holders and investors taking profits after the recent price surge.