Maker (MKR), the 30th largest cryptocurrency with a market capitalization of almost $5 billion, had soared to greater heights when it broke the $4,500 mark in one decisive clean sweep.
Since the start of the year, the token has grown nearly eight-fold. It rose from almost $600 to more than $4,600. Just recently, it recorded a new high when it inched very close to the $5,000 mark, tallying a price of $4,995.
In the past week, holders of Maker have seen a 64.23% price increase, and the momentum carried on, leading to the accomplishment of the above-mentioned milestone.
Projections and predictions
Assuming that Maker price stabilizes above $4,200, a faster upward channel might be opened for the cryptocurrency.
Hitting a new high meant that the altcoin wouldn’t encounter strong selling pressure on its way up and if the entire crypto market recovers from its slump, it is most likely for Maker to break through the $5,500 mark.
However, a significant increase in the number of sell orders will move the token below the support level around $4,100, and this may trigger a severe correction towards the 20-day Exponential Moving Average set at almost $3,800.
The Maker profile
Maker (MKR) became the first Ethereum-based smart contract system to launch an automated cryptocurrency lending platform. The first decentralized basic stable currency, Dai, is provided by MKR along with the derivative financial system. This promoted prosperity in Decentralized Finance (DeFi).
On April 19, MakerDAO community started to vote on MIP45, which pertains to the proposed upgrading of the liquidation system of the Maker protocol and sustaining Dai stability pegged to the U.S. dollar.
Once approved, the system will give higher security, predictability, and decentralization. Community members will also be given more chances to participate in collateral auctions via the Auction Keeper software with a more conventional interface.
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