In a turbulent market that has kept crypto enthusiasts on their toes, Maker’s recent rebound from a nine-month low offers a glimmer of hope but also prompts a wealth of speculation about its future trajectory. While some signs indicate potential for recovery, the path ahead for MKR could be fraught with challenges.
Muthoni Mary, a dedicated contributor to AMBCrypto, reports that despite the recent upward movement, bearish pressures linger ominously for Maker. As of the latest update, MKR is trading around $1,600, a substantial decrease of 24% over the past month. The token’s market capitalization has equally taken a hit, falling to $1.4 billion per CoinMarketCap.
MKR has struggled since MakerDAO’s controversial rebranding to Sky, which left a sour taste among investors. The token has been in a downward spiral since July, forming lower highs and moving within a descending channel. Although it appears to be attempting a breakout, the absence of boosting buying volumes raises skepticism.
Trading volume data provides a clearer picture of the current struggle. The volume histogram bars have shifted to red, indicating that selling pressure has taken the lead over buying activity. However, amidst these turbulent waters, the Moving Average Convergence Divergence (MACD) line shows a glimmer of optimism. While still in negative territory, the MACD line has crossed above the signal line, hinting that bullish momentum might be brewing. This positive trend is reflected in the green MACD histogram bars, but a robust bullish reversal will require a surge in buying activity to counterbalance the sell-side pressure.
Maker’s rebrand to Sky and the consequential announcement about upgrading the DAI stablecoin to USDS stirred market emotions. Initially, these announcements provided a boost, with Solana’s anticipated release of the USDS stablecoin igniting slight gains for MKR. However, optimism was short-lived. According to data from CryptoQuant, selling activity seems to be on the rise, with the exchange supply ratio for MKR nearing its peak since April. This suggests either a shift by traders from MKR to SKY, or increased selling pressure due to the token’s declining price.
A turnaround requires substantial buyer intervention to absorb the prevailing selling pressure and facilitate Maker’s recovery from the current range lows. Yet, current sentiment remains dauntingly negative. Data from IntoTheBlock indicates more bearish than bullish activity, underscoring the prevailing pessimism.
The cryptocurrency market is inherently volatile, and for Maker, the road to recovery lies in the hands of investors and market dynamics. While some indicators suggest potential change, only the unfolding of time will reveal whether MKR can defy its recent past and emerge strong from this bearish stranglehold. For now, traders and investors must watch closely as the saga continues to unfold.