Maker (MKR) surged 17% in 24 hours: Speculative cash flow or sustainable signal?

Maker (MKR) just had a spectacular breakout with a 17% increase in just 24 hours, quickly becoming one of the best-performing cryptocurrencies in the market in the short term.

However, the main driving force behind this strong increase comes from the derivatives market - where investors bet on the upward trend - while the spot trading volume still shows caution. This raises a big question: Is this breakout truly sustainable, or is it just a short-term speculative surge?

Derivatives Boost the Rise of MKR

The strong increase of MKR in recent times has mainly been driven by decisive Long positions in the derivatives market. As of the time of writing, the OI Weighted Funding Rate has reached a positive 0.0170% – the third highest figure since the beginning of 2025, clearly reflecting the dominance of the bulls (Long) and indicating that they are willing to pay fees to maintain their positions.

Source: CoinGlassMeanwhile, in the spot market, the picture is completely opposite. Investors have sold over 1 million USD MKR in the same timeframe, indicating a strong profit-taking trend – a move commonly seen after sudden price surges. Although it could also be a stop-loss action to hedge against the risk of corrections, given that MKR has just gone through a hot surge, it is highly likely this is an exit to realize profits.

Source: CoinGlassHowever, according to analysis from Bitcoin Magazine, the current upward momentum is unlikely to be sustained for long. Technical indicators are signaling warnings about the possibility of a short term correction – a reminder for investors to be extremely cautious with the upcoming fluctuations.

Is MKR about to retest the support area?

On the daily time frame, MKR has turned the recent peak area around $1,962 into a new support zone. However, the current price action indicates that this zone is likely to be tested again soon, especially as the short term uptrend shows signs of weakening, while selling pressure from the spot market has yet to subside.

Nevertheless, as long as MKR maintains above the upward trend line, the positive technical structure has not yet been broken. A rebound from the support zone of $1.962 – or even deeper at $1.867 – could very well pave the way for the next recovery cycle, aiming for the target of $2.400 in the short term.

Source: TradingView## Bollinger Band and MFI indicator indicate potential recovery after correction

Some technical signals are reinforcing expectations for a recovery following the recent correction of MKR. At the time of writing, the Bollinger Band indicates that the price of MKR has touched the upper band (red) – a level that typically signals a short term correction trend.

According to observations from historical data, whenever the price approaches the upper boundary, the market often experiences a correction to the middle band (blue) or even to the lower band (green) of the indicator. These are all important support zones, often creating strong rebounds for the price and sometimes even opening up opportunities to establish new peaks.

In the context of a corrective force forming, Bitcoin Magazine states that the possibility of a price recovery from the mid-band is entirely justified – especially when market liquidity is showing clear signs of improvement.

! Source: TradingViewThe (MFI) Money Flow Index has soared to 66.62, reflecting that capital flows are still pouring into the market strongly. As a result, MKR continues to maintain its position in the positive liquidity zone. In the event of a slight correction in the price, this can be an opportunity to attract more buying power from traders who are waiting for a more optimal entry point.

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