MKR could be gearing up for a strong rally in the coming week, fueled by both technical signals and growing momentum around the Sky Protocol rebrand.
According to data from crypto.news, Maker (MKR) surged over 17% on June 3, hitting an intraday high of $1,944 before settling around $1,892, its highest level since mid-May. The token’s market cap is hovering near $1 billion, and daily trading volume jumped nearly 50% to around $200 million, clear signs of rising activity and renewed investor interest.
One of the main drivers behind Maker’s recent rally is the ongoing transition to SKY, the new governance token introduced as part of MakerDAO’s rebrand to Sky Protocol. However, what’s drawing the most investor interest is the launch of the USDS reward system, which officially went live on June 2.
For context, USDS is a stablecoin issued by Sky Protocol and backed by surplus revenue from the protocol’s DeFi operations. With the new rewards program, users who stake SKY tokens can now earn yield in USDS.
To access these rewards, MKR holders must first upgrade their tokens to SKY. This has likely triggered a spike in demand for MKR, with over 420,000 tokens converted as of June 3, reducing its circulating supply and contributing to the recent price surge.
MKR price analysis
On the 4-hour chart, MKR appears to have broken out of a bear flag pattern that had been forming, signaling a potential trend reversal. The 50-day simple moving average is closing in on a crossover with the 200-day SMA, a classic bullish signal known as a “golden cross.”
Momentum indicators are also strong. The Aroon Up is sitting at 71.43%, while Aroon Down is at 21.43%, showing the uptrend is dominating. If the momentum holds, MKR could comfortably break through resistance at $1,900.
Zooming out to the daily chart, MKR has climbed above the upper trendline of a descending channel, another bullish sign.
The Supertrend indicator was flashing green, which is viewed as a buy signal by traders. On top of that, the MACD has made a bullish crossover, further supporting the case for more upside.
If the bullish momentum remains intact, MKR could break through the key resistance level at $2,076, which aligns with the 78.6% Fibonacci retracement. Beyond that, the next major target is around $2,428, the high from last December, which would also represent a 28% gain from current levels.
On the contrary, if MKR gets rejected at this resistance zone, that could flip the outlook. In that case, prices might slide back toward the $1,412 support area.
