The cryptocurrency market has been on a red-hot streak in the past week, with most large-cap assets posting significant gains. The Maker (MKR) token is another one of the assets enjoying a positive week, with the DeFi (decentralized finance) coin recording a 12% price increase in the last seven days.
Analyst Forecasts $1,850 Target For Maker Price
In a recent post on the X platform, prominent crypto analyst Ali Martinez has put forward an exciting outlook for the price of Maker over the next few weeks. According to the crypto pundit, the token appears to be gearing up for a bullish breakout soon.
The rationale behind this bullish projection is the chart formation of an inverse head-and-shoulders pattern on the four-hour timeframe. For context, the inverse head-and-shoulders pattern is a technical analysis formation characterized by three distinct troughs; a lower “head” between two higher “shoulders”.
This chart often indicates a potential bullish reversal, where there is a shift from a downward trend to an uptrend. This trend reversal is confirmed when the price breaks above the neckline, which is a trendline connecting the peaks from the head-and-shoulders pattern.
As shown in the highlighted chart, the Maker price has only just successfully broken above the neckline and appears to be retesting the trendline. Martinez noted that this breakout seems like a precursor to a 12% rally that would see the DeFi coin reclaim the $1,850 level.
In a separate post on X, Martinez shared another bullish analysis for the price of MKR. This latest projection is based on the Tom Demark (TD) Sequential indicator, which is used in technical analysis to identify potential points of trend exhaustion and price reversal.
According to Martinez, the TD Sequential has flashed four buy signals on the Maker three-day chart. This observation combined with the bullish breakout from the head-and-shoulders neckline suggests that a huge rally might be on the horizon.
One of the leading tokens in the #RWA sector, #Maker $MKR, is gearing up for a bullish breakout! The TD Sequential indicator has flashed four buy signals on the 3-day chart, suggesting it’s time to accumulate #MKR before it moons! pic.twitter.com/wfyayhB5rX
— Ali (@ali_charts) September 27, 2024
Martinez hinted that this might be a critical period for accumulating the Maker token before its value skyrockets. Moreover, the cryptocurrency market, specifically the altcoin sector, appears to be veering towards an optimistic climate in the past few weeks.
MKR Price At A Glance
As of this writing, the price of Maker stands at around $1,691, reflecting a 5% increase in the past day.
Featured image from iStock, chart from TradingView
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