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- 1 MakerDAO plans to enable MKR as collateral for the DAI stablecoin
- 2 Maker (MKR) token price surged 13% and formed a bullish continuation pattern
- 3 MKR crypto price breakout of the 200 day EMA and prepares for the golden EMA crossover
Maker (MKR) crypto prices shot up more than 13%, due to a news circulating in the market that MakerDAO might allow its users to borrow DAI stablecoin against its MKR governance token.
Analyst raises concern because allowing users to borrow DAI stablecoin against MKR could be considered similar to the mechanism behind Terra’s (LUNA) ill-fated UST stablecoin which collapsed in May 2022 and wiped out almost half a trillion USD from the crypto currency market. However, it will be interesting to see how the MakerDAO team will manage the DAI stablecoin in future.
Source – https://twitter.com/ImperiumPaper/status/1628894110634463232
Currently, HNT/USDT is trading at $914 with an intraday gains of 15.55% and the 24-hour volume to market cap ratio at 0.1317
MKR token price preparing for $1000?
Maker (MKR) token price had shown a wild up move of 13% and formed a giant bullish candle indicating that the prices are in the initial phase of rally and investors are expecting more upward momentum in the coming months. Recently, a news circulated in the market that MakerDAO is planning to enable MKR as collateral for the DAI stablecoin which raises concers in the crypto community because investors still remembered what happened with Terra (LUNA) when they used this mechanism.
On the other hand, Maker (MKR) prices reacted positively to the news and broke out of the narrow range consolidation which has triggered the short covering and prices seem to be picking up the momentum to reach $1000. Meanwhile, the MKR token bulls have managed to push the price above the 50 and 200 day EMA indicates that the positional trend is in the direction of bulls and any short term correction from the higher levels will be easily absorbed by the responsive buyers.
The technical indicators of the MKR token like MACD had generated a positive crossover indicating the bullishness to continue for some more time whereas the RSI at 70 denotes that the prices are near to the oversold zone which might create trouble for the short term bullish traders.However, if the market sentiment turned negative and prices face rejection from the higher levels then $700.00 will be act as an important support levels for the bulls.
Summary
Maker (MKR) crypto price had shown a surprising up move of 13% on intraday basis when the market came to know that MakerDAO may enable MKR as collateral for DAI stablecoin but crypto analysts believe that this decision may not work out in the long run. However, the technical analysis shows that prices are into bulls grip and any short term correction might see aggressive buying from the support levels.
Technical levels
Resistance levels : $1000.00 and $1100.00
Support levels : $700.00 and $600.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
