Maker Price Analysis: MKR Remains One of the Top Gainers in October

Throughout 2022, Maker (MKR) has been in a downtrend, which is to be expected given that the whole crypto market has been bearish. The price of MKR has declined by around 80% since the beginning of the year.

The price of MKR went as low as $570 in September of this year, the lowest in almost two years for Maker. Nonetheless, after finding support in that area, MKR has been in a correction. 

More recently, the price of MKR has increased by around 100%, making Maker one of the best performers in the market for the last 30 days. Buyer sentiment has improved significantly as traders are hopeful that this momentum may continue in the coming days/weeks. Here is a full list of some of the best performers of this in the market:

But before we estimate how the price of MKR can move, we have gone through both the fundamental and technical factors of Maker.

Maker (MKR) Technical Analysis

Maker has been on the rise in the 1-day chart. The price of Maker, however, failed to break resistance at around $1160, which coincides with the previous swing high of MKR.

When looking at the 1-day chart, we could notice a possible rounding bottom pattern. Moreover, given the recent retracement of 24%, we could see a potential cup-and-handle pattern form, which could be an indicator of a potential breakout in the coming weeks.

The Fibonacci retracement levels suggest that the price of MKR has retraced to the 50% level. While this level is not widely recognized as a Fibonacci level, many analysts take the 50% level as a legit level that the price can retrace. With buying pressure still high, MKR could use this support at $880 and aim for a higher price. We could see MKR retest resistance in the coming days, other things equal.

Maker (MKR) Price Analysis

MKR/USDT 1-Day Chart. Source: TradingView

Indicators

The fear and greed index suggests that there is relatively less fear for MKR traders due to the recent increase in the price. The recent retracement has kept the fear factor quite eminent, but the overall sentiment has improved for Maker adherents.

The 20-MA of a 1-day chart is currently below the price of MKR, suggesting that the short-term trend is now bullish. The same applies to the 9-EMA of a 1-day chart. The EMA line could momentarily act as support to the price if the latter attempts to decline further.

The RSI of a 1-day chart was recently above 70, making MKR overbought. Hence, traders expected the recent retracement. Nonetheless, now the price is slightly below 70, meaning that the momentum remains bullish and that MKR could have more space for growth in the coming days.

The MACD line of a 1-day chart is above the signal line and above the baseline, meaning that the momentum is quite bullish for Maker (MKR). However, the lines are currently converging due to the recent retracement, meaning that the momentum may shift easily in the coming days.

Maker (MKR) Fundamental Analysis

There are various reasons why Maker has been performing well recently. One reason could be that its main competitor is not performing well. As you may or may not know, Maker fuels the production of DAI tokens, which is a direct rival to UST and LUNA. Since UST is failing to re-peg to USD, making DAI ultimately the better deal out of the two.

According to experts, another reason for Maker’s recent increase in price is the increased support by institutional whalers. Statistics show that top ETH whalers alone hold millions worth of dollars of MKR tokens. More precisely, the top 500 ETH whales currently hold around $50 million worth of MKR tokens.

More recently, MakerDAO has devoted to investing $500 million in US treasuries and bonds to hedge the risk from this bear market by diversifying the balance sheet of the project. Since Maker is a decentralized autonomous organization (DAO), the decision was done through the decentralized governance that Maker has. Such measures were perceived as necessary by many given the scandal that occurred with Terra (LUNA) and the UST stablecoin a few months ago.

MKR Price Prediction

Based on this analysis of Maker (MKR), we could expect the price of MKR to increase in the coming days given that it found support at $880. The price of MKR could retest resistance in the coming days, and it could aim for around $1,500 in the coming days. 

As for the longer run, MKR has recently hit the lowest point in almost two years. Because of that, traders could now argue that MKR has all the space it needs for growing in the coming months. The project in itself is quite promising, and with more institutional backing, we could see MKR for $5,000 in the coming months, ceteris paribus.

Takeaways

  • Maker (MKR) increased by 100% in the last 30 days.
  • Technical factors suggest that MKR could increase in the coming days.
  • Maker’s recent growth could be attributed to the poor performance of UST as well as ETH whalers that have pushed the price of MKR upward.
  • MKR could aim for $1,500 in the coming weeks, other things equal.