Maker adds 23% after a Two Months Squeeze, MKR Bulls Target $850

The Maker price, mirroring Ethereum’s steady performance, is also surging at the time of writing (Jan 4).

Adding 23 percent in the past week of trading, only trailing ETH, and gaining versus the BTC, the MKR/USD bulls are in charge of proceedings.

Notably, the shift in prices is attracting more traders.

Over the last 24 hours, for instance, Maker’s average daily trading volumes have risen 597 percent to $260 million (374,481 MKR).

Maker (MKR) Price Overview

Aforementioned, the Maker price is up 23 percent in the last week of trading, only trailing ETH.

At spot rates, MKR/USD is within a bullish break out pattern after easing past $600, clearing a two-month resistance with decent trading volumes.

The gains of the last 24 hour, therefore, confirms the 2-month horizontal movement as an accumulation, an opportunity for traders to ramp up token purchases at a discount.

In the medium term, $750 and $850 are bull targets if the current trend continues. Conversely, assuming there is a pullback, and bears flow back following through on yesterday’s liquidation in smaller time frames, the first support (previous resistance) would be $600.

Sharper losses below this level—at the back of high trading volumes exceeding Jan 3, invalidates the current projection, allowing bears to drive back prices to within a consolidation.

Maker (MKR) Market Movers

The Maker protocol is one of the most dominant DeFi protocols.

One of the earliest lending protocols, Maker has a considerable market share of the over $17.7 billion assets under management in different DeFi open finance dApps. The protocol is also the official minter of DAI, a stable coin.

Since DeFi tokens and ETH performances move in sync, an expansion of the latter’s prices will see DeFi total value locked (TVL) rise, indirectly causing more people to lock assets in Maker.

A new proposal to the Maker community to launch a yield farming program has been submitted. If adopted, supporters say it would help stabilize DAI/USD peg and drive the DAI’s market cap to over $100 billion.

In this arrangement, for every DAI loan, a borrower is incentivized and receives extra MKR tokens. A DAI reserve fund will be created while the MKR yield will be from existing foundation reserves and/or inflation.

As part of other steps, the protocol will lobby Aave or Compound to add MKR as collateral so that existing holders can borrow against their stash and even participate in yield farming.

Maker Price Prediction

The MKR/USD pair is trading within a bullish breakout pattern.

Surging above $600, the surge was with high trading volumes indicating demand from market participants. Already, bars are banding along the upper BB—hinting of increasing momentum. The divergence of Bollinger Bands after a two-month squeeze also shows high market volatility.

In a classic bullish breakout, every low may be a loading opportunity for bulls. Immediate terms will be at $750 and $850, respectively.

Specifically, since the correction was from the 78.6 percent Fibonacci retracement level, ideally, the MKR/USD price may rise back to retest $850, the peak of July to August 2020 range.

The $600 level (previous resistance) is now support. It shall be valid as long as prices are trending higher and any correction is with low—below-average trading volumes.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.