Maker Continues to Rally — Will MKR’s Bullish Momentum Last?

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Maker (MKR), the governance token of the decentralized finance (DeFi) protocol MakerDAO, has been one of the standout performers in the crypto market this September, surging over 50% since August 25. This impressive rally has pushed MKR to new yearly highs, reigniting investor interest and raising a critical question: Can this bullish momentum continue?

As macroeconomic uncertainty looms—particularly with growing expectations of an impending economic downturn—assets like MKR that are deeply embedded in the DeFi ecosystem are facing both opportunities and risks. In this analysis, we’ll explore MKR’s price action through technical frameworks, assess its short-term outlook, and evaluate whether the current uptrend has room to run—or if a correction is just around the corner.

MKR Price Analysis: A Structural Breakout in Motion

Looking at the daily chart, a clear narrative emerges. MKR hit its bear market low on January 3, plunging from its all-time high of $6,410** (set on May 1, 2021) down to **$505—a staggering 92% drawdown. Such a deep correction often marks the end of a prolonged bear cycle, especially when followed by a strong and sustained recovery.

And recover it did.

From the January low, MKR staged a powerful rebound, gaining 195% and climbing to a recent high of $1,486**. This recovery didn’t happen overnight. The first major leg unfolded between January and March 8, lifting the price to **$991. After a brief pullback that retested the January low, MKR stabilized and began building momentum again.

By June 10, MKR had dipped to $615, forming what appears to be a healthy consolidation phase. This dip may represent the second phase of a larger five-wave bullish impulse pattern—commonly observed in Elliott Wave Theory.

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If this wave interpretation holds, the next leg—a sharp rally from June 10 to August 2—where MKR reached $1,375—could be interpreted as Wave 3, typically the strongest and most extended wave in an impulse sequence.

Following that peak, MKR corrected lower in early August, retesting key support levels near the March highs. This behavior aligns with the characteristics of Wave 4, which often takes the form of a sideways or shallow pullback after a strong impulse.

Now, since August 25, price action suggests we’re in Wave 5—the final leg of the current bullish cycle. This wave has already pushed MKR above $1,400, indicating continued strength among buyers. While Wave 5s are often less powerful than Wave 3s, they can still deliver significant gains, especially when fueled by broad market optimism or sector-specific catalysts.

MKR Price Forecast: Targeting $1,700 — Then What?

Based on technical analysis of both daily and 4-hour charts, there appears to be limited but meaningful upside potential remaining in the current cycle.

On the 4-hour timeframe, the internal structure of the current rally suggests that a fifth-degree impulse wave is still unfolding. While we may be approaching its final stages, the absence of clear exhaustion patterns means further upward movement is still possible.

Our projected target for the completion of this fifth wave is $1,700, which represents the next major resistance zone. This level aligns with Fibonacci extensions derived from earlier swings and coincides with historical supply zones where selling pressure could intensify.

However, beyond $1,700, the path forward becomes less certain.

From a broader perspective, even if MKR reaches this target, a meaningful correction is likely to follow. In healthy bull markets, such corrections take the form of ABC patterns, where prices decline in three distinct phases before resuming the larger uptrend.

We anticipate the first major pullback—post-rally—to find support around $1,000. This level is significant not only because it served as resistance earlier in the year but also because it aligns with the breakout point of the current rally. A retest of this zone would confirm a higher low structure, reinforcing the ongoing bullish trend on higher timeframes.

It’s also worth noting that momentum indicators are flashing caution signs.

The Relative Strength Index (RSI) on both daily and 4-hour charts has entered overbought territory multiple times during this rally. While overbought conditions don’t necessarily mean an immediate reversal—especially in strong trends—they do suggest that buying pressure is stretched and vulnerable to profit-taking.

Frequently Asked Questions (FAQ)

Q: What is driving MKR’s recent price surge?
A: The rally is likely fueled by a combination of factors: renewed optimism in the DeFi sector, increased protocol revenue from lending activities, and broader market momentum as investors rotate into high-beta crypto assets ahead of potential macro shifts.

Q: Is MKR a good long-term investment?
A: MakerDAO remains one of the most established and resilient protocols in DeFi, with a proven track record of stability and governance effectiveness. For investors bullish on decentralized finance and algorithmic stablecoins (like DAI), MKR offers both utility and governance exposure—but should be approached with risk awareness due to volatility.

Q: What happens if MKR fails to reach $1,700?
A: Failure to break past $1,700 could indicate weakening momentum and early signs of reversal. Traders should watch for rejection patterns such as bearish engulfing candles or RSI divergence at resistance.

Q: How does macroeconomic outlook affect MKR?
A: With recession fears rising in 2025, risk assets like cryptocurrencies may face headwinds. However, DeFi protocols like MakerDAO could see increased usage as users seek alternatives to traditional financial systems—potentially supporting demand for MKR.

Q: What technical indicators should I watch for MKR?
A: Key indicators include RSI for overbought/oversold conditions, volume trends during breakouts, and adherence to Elliott Wave structures. Moving averages (like the 50-day and 200-day) also serve as dynamic support/resistance levels.

Final Outlook: Uptrend Intact — But Caution Advised

In the short term, MKR’s bullish momentum remains intact, supported by strong technical structure and positive market sentiment. A move toward $1,700 is both plausible and technically justified.

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However, given the parabolic nature of the recent rise and increasingly stretched momentum indicators, traders should remain cautious. The risk of a sharp pullback grows with each new high.

A confirmed reversal—marked by strong rejection at resistance followed by sustained selling pressure—would increase confidence in an upcoming ABC correction targeting $1,000. Until then, the trend is still up.

For investors and traders alike, this phase represents a classic “climb the wall of worry” scenario. Sentiment is optimistic but not euphoric—leaving room for further gains while also demanding vigilance.

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Ultimately, whether you're holding for long-term exposure or trading short-term momentum, understanding the underlying wave structure and key psychological levels will be crucial in navigating MKR’s next phase.

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