DOT and MKR Price Forecast: Polkadot Surges While Maker Sees Strong Weekly Gains

DOT has managed to maintain its weekly gains as well despite the overall weakness that digital assets have experienced lately.

Its positive performance today opposes the downturn that the crypto market as a whole exhibits as the combined market cap of digital assets has retreated by 1.9% in the past day according to data from CoinMarketCap.

Meanwhile, Maker (MKR), the governance asset of the MakerDAO, has gained 3.3% in the past 24 hours but has accumulated a 38.8% gain in the past 7 days.

MakerDAO is the entity in charge of overseeing the DAI stablecoin and also a launchpad for new tokens.

Both companies, Polkadot and Maker – which was recently renamed to Sky Ecosystem – are participating in an event called Ethereum Denver this week. The news that the two developing teams have been sharing during the conference may be prompting their latest upticks.

DOT Stands to Gain 24% If It Breaks Above $5.3

Polkadot recently announced an important step toward making Polkadot fully compatible with the Ethereum Virtual Machine (EVM) in collaboration with BlockDeep Labs.

This is an important milestone that precedes the development of two other solutions called Hub and PolkaVM that will allow developers to run applications that use Ethereum’s code on Polkadot

Polkadot (DOT) is currently the 20^th largest cryptocurrency, with a market cap of $7.94 billion, and it is currently trading 90.8% below its all-time high of $55 per coin from November 2021.

Trading volumes for DOT are up 20% in the past 24 hours and currently stand at $361.1 million, emphasizing the strength of today’s uptick.

The daily chart shows that DOT has taken the first steps to reverse its downtrend with its latest three-day winning streak. Momentum indicators favor a bullish short-term outlook, as the Relative Strength Index (RSI) just moved above the signal line.

Moreover, the MACD’s histogram is still in positive territory and exhibits growing momentum, as indicated by two consecutive steadily rising green bars.

Moving forward, DOT must overcome the $5.3 resistance to truly reverse its downtrend. If that happens, a first target for this crypto asset could be set at around $6.5 per coin, meaning a 24% increase compared to today’s prices.

Aggressive traders could enter a long position based on today’s break, but the odds that DOT could reject a move above the $5.3 level are still a bit too high to take those chances considering that market sentiment is far from supportive at the time.

The highest risk-reward ratio would be achieved if DOT rises above $5.3, as the stop loss can be set below those levels. Using the same target of $6.5 for the token, that would result in an RR ratio of 1.7.

MKR Hits Key Resistance – Is the Rally Over?

MKR’s daily chart shows that the token managed to reverse its downtrend, as it experienced a significant vertical upswing since February 17.

The Relative Strength Index (RSI) rose without stopping to overbought levels, but the rally has taken a pause in the past couple of days, as indicated by some heavy selling taking place once the asset tries to rise above the $1,750 level.

Today’s uptick is managing to push the price above a key resistance at $1,650 per coin. However, the RSI is already predicting a long-due correction for the token that could push it back to the $1,350 level, as early buyers take some profits off the table from the latest rally.

The downside risk at this point is too high to justify a long position. This does not mean that MKR could not rise further in the next few days, but the odds favor a pullback considering how stretched momentum indicators are.