MKR price volatility: Will the $1,300 threshold hold?

! MKR price volatility: Will the $1,300 threshold hold?* At the time of writing, MKR is testing support at $1,279 as cost base clusters indicate heavy investor concentration between $1,300 and $1,500

• The (MFI) Cash Flow Index at 29.04 indicates an oversold condition and accordingly a possible bounce on the chart

Maker [MKR]'s price activity over the past few weeks has been highly volatile, with the cryptocurrency recording a reversal on the chart after hitting a low in mid-February. In fact, the token has risen to $1,700, only to drop back to $1,350 – a sign of strong participation from investors at key prices.

Using the Cost Base Allocation data, we can analyze how MKR holders react to price movements, which supply clusters have been absorbed, and which new clusters are forming. The insights from this analysis may give us a clearer view of MKR's next direction.

Cost Base Allocation – Where are investors locating?

The Cost Base Allocation chart gives us a detailed view of how Maker investors have participated in price movements. Supply clusters highlight areas where buyers have entered the market and where distribution has occurred.

The data indicates that a large number of investors have accumulated MKR as it trades between $1,300 and $1,500. This region has served as an important accumulation area. And, as the price approaches this range, investor behavior will determine whether the support level holds or if further declines are likely.

! Maker Cost Base Allocation Source: Glassnode

Above the $1,500 level, the supply clusters appear to be sparse – This suggests that resistance may form if the price tries to regain these levels.

Altcoin support and resistance levels

At the time of writing, MKR is trading at $1,279, after falling 1.31% in the last 12 hours. The 50-day moving average [MA] at $1,331, which acts as a resistance level on the chart.

A breakout above this level could move momentum towards the bulls. Meanwhile, the 200-day MA at $1,471 will remain a key long-term resistance area, marking a potential profit-taking area.

! MKR Price Trend Source: TradingView

The (MFI) Cash Flow Index read at 29.04, suggesting that MKR may be heading into the oversold zone.

If the buying pressure increases, a possible bounce from the current levels could push the price towards $1,350–1,400, where the next major supply cluster lies. However, if sellers remain dominant, MKR could test the $1,200 level – an area that has previously acted as strong support.

Investor participation and market sentiment

A deeper look at investor behavior suggests that recent accumulation trends have indicated a mix between long-term holders who are absorbing supply and short-term traders pivoting out at resistance levels. This dynamic means that the price trend of MKR will be determined by whether the accumulation remains strong in the range of $1,300–1,500.

If MKR manages to hold the lower zones of this range and the buying pressure intensifies, the token may attempt to break out again towards $1,600–1,700. However, failure to maintain support at the current level could lead to a deeper correction below $1,200. This is where the next demand area is likely to form.

What's Next for MKR?

Maker's price is currently at a critical point, with the cost base distribution highlighting important accumulation and distribution areas. The next move will depend on whether buyers can maintain demand in the $1,300–1,500 range or whether a further decline is needed to establish a new demand zone.

For traders and investors, keeping an eye on the MFI, moving averages, and cost base clusters will be essential to identify trend changes. If the bullish momentum returns, a move above $1,400–$1,500 could open the door to a retest of $1,700.

However, prolonged weakness could lead to a prolonged correction towards $1,200 or lower. As market conditions develop, the reaction of MKR investors at key levels will determine its next major move.

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