Maker, the governance token for Maker Dao and Maker protocol, is key to manage the DAI stable coin. Dai intends to keep its value as close to $1 as possible and offers a great prospect for investing in a decentralized environment. Dai is hence called a stable coin that Maker Dao supports. Stablecoins are pegged to the value of another asset, probably a fiat currency or metal, and unlike cryptocurrency is just the opposite of volatile.
Holders of Maker cryptocurrency can vote for various changes in protocols and logistics for risk management for the impending stable coin. More interest in controlling the DAI stable coin increases the Maker cryptocurrency, directly relating its movement with respect to the US dollar.
Technical analysis shows a potential to break the supports and drop down to under $2000 towards retesting the three-month low of $1927. The range between $1500 and $2000 makes the maker a discount buy. Details on the one-day price action analysis section.
Maker Cryptocurrency Price Analysis
Maker has been trading in a downtrend movement ever since breaking its upward trajectory trendline on August 24, 2021. Momentum break initiated a sell-off and has forced it back towards its immediate swing support levels.
Maker crypto has faced a strong rejection from its recent high of $4012, stumbling down to the lows of $2493. The fall in value was massive and correlated to the stability of the Dai stable coin. In technical terms breaking the 200 DMA on September 07, 2021, ensured that prices were soon headed in the negative direction. After two months of volatility, Maker entered a decent level, but this profit booking has ensured a new three-month low soon, breaking the June 25 low of $1969.
RSI has shown some buying signs, but the absolute low of volumes has worked inversely for the positive sentiment. At present, the first target should be closing above the 200 DMA. Having strong support at $2813 levels has so far helped Maker to stumble below $2500 levels. But the smaller consolidation range would soon break, and there is a higher probability of heading towards $1900 as per Maker price prediction.
The widening gap of Bollinger Bands since September 07 has already ensured a broader trading zone and higher volatility. When looked closely, it becomes clear that the price headed in the median band towards the negative band in late August itself, indicating a potential for profit booking sooner.
Maker for the last few days was trading with an upper resistance of $2950 on hourly charts. Surpassing and holding the gains of September 15, 2021, provided some confidence in this coin, but September 16 ensured a profit booking that came from the rejection of 200 DMA levels. Ensuring sell-off has pushed Maker below the swing support level indicating a strong negative movement. In the last few hours, the volumes and selling pressure have also increased, pushing it down to $2700 levels.