MakerDAO (MKR) Price Reclaims $1,500 For The First Time in 17-Months  —Another Bull Run Incoming?

Key Insights:

• MakerDAO (MRK) price crossed the milestone $1,500 territory on October 1, the first time since May 2022. 
• After the US Fed announced a Rate pause on September 20, the number of daily MKR Transactions has increased significantly as investors turn to the 8% DAI savings rate for profits.
• On-chain data shows that the MKR bulls the $1,600 resistance could pose a major obstacle in the coming weeks.

MakerDAO (MKR) price reclaimed the vital $1,500 milestone on October 1 for the first time since the TerraUST crash in May 2022. On-chain analysis examines key indicators that could further propel MKR’s price in October. 

MRK is the native token of MakerDAO — the renowned DeFi protocol that issues the DAI stablecoin. MKR has retraced toward $1,420 after reclaiming the $1,500 spot for the first time since the TerraUST algorithmic stablecoin crashed in May 2022. However, the bulls are regrouping for another MRK price rally.  

MKR Global Adoption Skyrocketed After Fed Rate Pause

Furthermore, there has been a comparable increase in MKR daily transactions in recent weeks. 

September 20, the US Federal Reserve announced interest rates on government bonds will remain unchanged at 5.50%. This macro event appears to that triggered a noticeable increase on economic transactions on the MakerDAO network. 

As depicted in the chart below, the Maker network registered 1,960 transactions on October 3. And notably, it has consistently recorded transactions greater than 1,200 since September 20. 

The Transaction Count metric gives an estimate of the current economic activity levels on a blockchain network. Typically, network activity increase is suggests that underlying token is in demand and being utilized in economically viable transactions. 

Unsurprisingly, the MKR token price has now witnessed a 15% price bounce between September 20 and October 4. 

Famously, MakerDAO currently offers 8% savings rate on its DAI stablecoin. Hence, the timing of this spike in MKR Transactions suggest that many investors increasingly turning to the Maker network for yield since the US Fed held bond rates unchanged at 5.50%. 

Notably, the next Fed meeting is slated for November 1, 2023. Hence, the MKR bulls have ample time drive the price further upward in October. 

MKR Price Prediction: $2,000 is a Viable Short-Term Target

From an on-chain perspective, the current sentiment surrounding the MakerDAO network is predominantly bullish. Hence, MKR price will likely rally toward $2,000 if the network transactions remain steady. 

The Global In/Out of Money Around Price (GIOM) data, which depicts the entry price distribution of current Maker investors, also confirms this optimistic stance. It shows that if MKR price can surpass the initial sell-wall at $1,600, the bulls could potentially push price rally toward $2,000 

As illustrated below, the 7,980 addresses purchased 74,520 MKR tokens at the average price of $1,810. If they sell once MKR approached their entry price, that could trigger a momentary pullback.

 

But if the network activity remains high, the Maker price rally could eventually reach a new 2023 peak of $2,000.

Still, the bears could invalidate that optimistic stance if MKR token price backtracks below the $1,300 level.

However, 9,210 addresses had bought 239,000 tokens at the maximum price of $1,412. If they hold their position, MKR could avoid a major bearish reversal.