Maker price at a test: Can MKR cross the $1100 mark?
Maker is a leading crypto lender in the decentralized finance space, where it uses smart contracts to execute the task safely on the Ethereum blockchain. Maker DAO is behind the Maker protocol, which is a valuable and popular platform in the DeFi space. That is why many crypto enthusiasts and investors closely monitor the evolution of Maker.
Since the inception of Ethereum, it has hosted hundreds of decentralized applications, many of which are in the finance space fulfilling the needs of lending, borrowing, and token swapping without the assistance of intermediary banks or other financial institutions.
Rune Christensen created MakerDAO in 2014 to prepare an ecosystem for decentralized finance applications. The aim was to generate a stablecoin for digital assets, which is pegged to the value of the dollar, and they created a smart contracts algorithm that collateralized the stablecoin.
MKR is the native token of this platform. The holders of the MKR token have the voting right on network proposals, so it is a governance token for Maker’s development and management. The entire lending system of this platform is dependent on DAI. Repositories maintain the liquidity in the Maker Vaults to collateralize DAI stablecoins.
It is a leading decentralized finance protocol with great future prospects. Read our technical analysis if you are considering MKR for long-term investment.
At the time of writing this post, MKR is facing the resistance of around $1100, which is currently trading around $1075. After taking support around $585, it turned bullish and has been in an uptrend for the last month. We think it will break the resistance because most technical indicators suggest bullishness for the short term.
Candlesticks are forming in the upper range of the BB with good volume, suggesting an uptrend. Moreover, RSI is over 73, and MACD is also bullish. It is a good time to invest and get some profit in the next six months. Maker is currently at a very crucial price point from where the steep downfall had begun, so read our MKR forecast before investing!
On the weekly chart, technical indicators suggest bullishness, and MKR candlesticks are also forming in the Bollinger Bands’ upper range. The last five weekly candles are green, which suggests strong bullish momentum.
However, we do not think it is an ideal time to invest for the long term because Maker may change the momentum soon, so you should invest when it crosses the level of $1300 decisively. Before that, you can trade for the short term with a strict stop loss.