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Price Analysis

Maker Bulls Reverses From $500, Gaining Versus BTC and ETH



The Maker price is range-bound. This has been the situation in the last 1.5 months.

As gleaned from the daily chart, the token is bounded by $600 on the upside and $500 on the lower side. Even so, buyers are in control as prices are still trending within the July to August 2020 trade range.

According to trackers,  the MKR/USD price is roughly four percent up against the greenback, BTC, and ETH, week-to-date, and stable on the past day.

Maker (MKR) Price Overview

The trajectory of the MKR/USD price depends on the breakout direction.

A break above $600 will confirm the recent oscillation as an accumulation. On the other hand, losses below the 78.6 percent Fibonacci retracement level of the July to Aug 2020 trade range mean sellers are positioning themselves for lower prices—a selloff.

Nonetheless, amid the consolidation is the increasing trading volumes. While there are no clear breakouts, it means is interest in the token and more investors (traders) are pouring funds without significantly swinging prices in either direction—a calculated ramp up or selloff.

As mentioned earlier, whether the MKR price will rally or dump depends on the direction of the breakout. A break above $600 opens buyers to $750. On the flip side, losses may see the Maker price slide back to July 2020 lows of $420.

Maker (MKR) Market Movers

For starters, Maker is a trustless lending facility on Ethereum where MKR is the governance token.

However, it also acts as a lender of the last resort whenever there is too much liquidation—like the ETH crash of mid-March 2020. Newly minted MKR tokens are then sold to recoup losses and to pay back lenders.

Maker is also the creator of the DAI algorithmically backed stablecoin. Borrowers collateralize their assets and receive loans in DAI while the protocol charges a stability fee.

The rise of DeFi has been good for the MKR token. On the other side, it has destabilized the DAI peg. To bring back normalcy and restore the peg, the community is voting to add more collaterals.

Besides, there is a proposal to reduce the stability fee to zero to incentive the minting of DAI—helping keep the peg close to $1.

Since the MKR token also helps in governance, there is a  proposal to prevent the use of flash loans in voting .

Maker (MKR) Price Prediction

Maker Bulls Reverses From $500, Gaining Versus BTC and ETH

The Maker price is stable on the last day, gaining versus the BTC, ETH, and the USD, week-to-date.

Gains are, nonetheless, marginal.

While the uptrend is clear, the MKR/USD is oscillating within a $100 cap.

Main support at $500 flashes with the 78.6 percent Fibonacci retracement level of the July to August 2020 trade range.

The three-bar bullish reversal pattern—marked with the hammer of Dec 9, is valid. For instance, Dec 10 bar was with high trading volume. The follow-through has forced the MKR/USD pair up by $34, at the time of writing.

With rising trading volumes from the Fibonacci reaction point, a loading opportunity may arise for aggressive traders. However, better opportunities exist once there will be a comprehensive break above the current consolidation.

Breaks above $600 may see the MKR/USD pair rally to $750. On the other hand, losses below $500 could see the pair crater back to $420, or July 2020 lows.

Ideally, the break out ought to be with comparatively high trading volumes exceeding those of Dec 10 (Coinbase data).

Chart Courtesy of Trading View

Disclaimer:  Opinions are those of the author, and are not financial advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!