Decoding the reasons behind Maker’s [MKR] upward momentum

ambcrypto.com:

Short sellers were forced to cover their bets on Maker [MKR] after the asset experienced a sudden and dramatic price increase. The MVRV has shifted position due to the recent pricing movement, making it overvalued.

Read Maker [MKR] Price Prediction 2023-24

Maker’s [MKR] movement had increased before 2 February. As of press time, it had climbed by 17.21%, which meant that it had increased by approximately 29% during the previous four days. But at the time of writing, it was trading at about $882 and had lost more than 4% of its value.

Source: TradingView

Yet, Maker [MKR] continued to exhibit positive momentum on the daily timeframe despite what appeared to be a price decrease.

The Relative Strength Index (RSI) was still heading higher than 60 and was over the neutral line. Also, it was apparent that the price drop had sparked a price correction. The fall caused the RSI to leave its previous overbought area.

According to CoinGlass data, in the last 24 hours, traders betting on price movements have liquidated short positions worth almost $444,000.

In comparison, investors only liquidated long positions worth $27,000 in Maker (MKR) throughout that time. Short sellers being forced to cover their positions usually leads to a sharp price rise.

Source: Coinglass

According to its Market Value to Realized Value ratio, Maker has been overvalued from the beginning of the year (MVRV).

As of this writing, the asset was high in the overvalued area because the 30-day MVRV was approximately 13.75%. Even though the current position is lucrative for the investors, it was still expensive to take a new position.

Source: Santiment

The Total Value Locked on Maker (MKR) reflects the favorable price trend of MKR. According to an observation, the