Maker (MKR) Surges 7.47% Following Grayscale’s MakerDAO Trust Launch

Maker (MKR) Surges 7.47% Following Grayscale’s MakerDAO Trust Launch

The governance token for the MakerDAO protocol, Maker (MKR), has seen a significant 7.47% price increase in the past 24 hours. This surge comes on the heels of Grayscale’s announcement on Tuesday regarding the launch of the MakerDAO Investment Trust.

New Investment Vehicle Fuels MakerDAO Frenzy

On August 13, Grayscale, a leading cryptocurrency asset manager, unveiled the creation of a MakerDAO Trust. This marks the firm’s second new investment product within a few days, following recent investments in two other altcoins.

The MakerDAO Trust is designed to give investors direct exposure to MKR, along with access to the MakerDAO ecosystem’s on-chain credit protocol and Real-World Assets (RWAs).

This development has not only impacted MKR’s price but has also triggered other positive trends within the MakerDAO network. On-chain data from Santiment indicates a noticeable uptick in active addresses, a key metric that reflects user engagement on a blockchain. An increase in active addresses typically signifies growing user activity in sending and receiving tokens on the network, while a decrease often points to reduced buying and selling among cryptocurrency holders.

The data suggests that MKR’s price rise may be driven not only by the Grayscale news but also by broader market interest. If these trends continue, MKR could see further price gains.

Moreover, data from IntoTheBlock highlights an increase in short-term holders of MKR. Specifically, the Addresses by Time Held metric has shown a double-digit rise in the number of addresses that have purchased the token within the past 30 days.

This uptick in short-term accumulation usually indicates confidence in a cryptocurrency’s near-term potential, while a decline would suggest the opposite. As with the active addresses, this increase in short-term holders could also signal growing buying pressure, potentially pushing MKR’s price even higher.

MKR Price Forecast: $2,500 on the Horizon?

MKR’s recent rebound to $2,127 comes after a steep 38% drop, during which the token fell as low as $1,716. According to the Relative Strength Index (RSI), MKR was oversold at that level.

The RSI, which gauges momentum by measuring the speed and magnitude of price changes, typically suggests an asset is overbought with a reading of 70.00 or higher, while a reading of 30.00 or below indicates it is oversold.

On August 7, MKR’s RSI was at 26.33, a clear sign of oversold conditions. However, the index has since risen to 44.07, indicating renewed buying interest. If this momentum continues and the RSI surpasses the neutral threshold of 50.00, it could validate the bullish outlook for MKR.

Should this occur, MKR could break through the current resistance level at $2,184.82. The next price target for the token might then range between $2,354.73 and $2,537.86.