Maker MKR surged by 45% after it got listed on the Coinbase exchange and now the altcoin is poised for further gains so let’s take a closer look in today’s altcoin news.
Just as with any other cryptocurrency that gets listed on Coinbase, Maker MKR surged right after an hour after coinbase Pro revealed that the platform will provide support for the asset on June 8. If MKR continues to benefit from the Coinbase Effect, there could be more gains for the asset in the near term. However, there is a major resistance wall that has to be broken first.
The Defi leader Maker made a few headlines after the impressive rally that seems to have been triggered by the ‘’Coinbase Effect.’’ Maker is an ethereum-based DAO and now started increasing after coinbase Pro announced the listing of the token to its retail platform. The price of MKR consolidated for more than a month within the narrow trading range and this area was defined by the $306 support level and the $356 level but after the announcement, the price surged more than 45%.
The ERC20 token increased to $150 in less than an hour to reach a high of nearly $500. The ‘’Coinbase Effect’’ is now considered a phenomenon in which the token price spikes dramatically after it gets listed on the Coinbase crypto exchange. Although coinbase is not the biggest crypto exchange on the market, its reputation plays a huge role in the price jumps once assets are added to the platform. OmiseGo for example, was also recently added to Coinbase and its price doubled in about a week.
From a technical perspective, Maker’s recent bullish impulse allowed the price to break the 50% fib retracement level and it seems that the altcoin is trying to turn this level into a support level. If MKR manages to do so, the next significant area of resistance is standing at the 38% fib retracement level at the $516 price range.
According to the GIOM data, there are 2,100 addresses buying about 130,000 MKR at the average price of $516. The good news for those that want to buy is that MKR is now sitting on top of the massive support barrier. Also, 62% of the MKR tokens were acquired at a lower price while 33% were purchased at a higher price. These figures only confirm that investors are confident about the upswing price in the future.
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