MKR is a governance token for Maker DAO and its protocol to issue and manage a DAI stablecoin. To your surprise, it is an ERC-20 token, and the Ethereum blockchain secures it. Maker is meant to support the DAI stablecoin, which is managed by its Maker DAO community with a soft peg to the US dollar. The goal of this ecosystem is to support decentralized finance using smart contracts.
To understand the number game, DAI has a market capitalization of $7.25 billion while Maker has just $1 billion. DAI’s growing market capitalization should add more value to the MKR token. The only downside for Maker token holders is that it has severely low transaction volumes as DAI is treated with more priority than its supporting ecosystem.
MKR token has displayed the strength to surpass its blockers and now faces price action-based resistance of $1088, which is slightly above the recently concluded 50 EMA levels. Technicals projects strength and capabilities, but MKR faces stiff resistance zones above $1500. Read MKR price prediction to know about the token’s future price projections.
MKR token showcases the buying strength to overcome its immediate resistance while facing a stiff lack of volumes compared to the volatility in DAI; Maker’s price action witnessed a spike in May 2022. But once again, as DAI stabilized in the aftermath of the LUNA crisis, MKR is headed towards the immediate resistance level of $1088.
RSI has surpassed 55 on the histogram, indicating a renewed buying strength, with MACD also showcasing a bullish crossover pattern. A bullish trend is emerging as Maker crossed the $1000 mark, and holders should expect some turbulence near the $1088 and $1500. The price action thus offers a decent rally once the immediate resistance is breached.