The decline in cryptocurrencies has stopped during the past few weeks, after the second wave of crypto selling ended in the last week of June. Most cryptocurrencies, including Bitcoin, made new lows in the second wave, but MakerDao held above the previous lows, despite the 200 SMA (purple) being broken last month. The 200 SMA held as support on the daily chart during the main crash in May.
However, before that, the 100 SMA (green) was providing support, while after the big hammer candlestick, which is a bullish signal, and the bounce that followed, this moving average remained as support again, until the second wave of crypto selling in June.
Maker Coin Live Chart
Sellers pushed below the 200 SMA as well, but the price reversed back up and it has been trading above this level since the beginning of this month. In fact, early last week this cryptocurrency tried to resume its bullish trend, since the price action was looking better here than for most of the other cryptos.
But, the 100 SMA (green) which had been acting as support, turned into resistance on the daily chart, and it rejected the MKR/USD, after forming an upside-down candlestick on the daily time-frame. This was a clear rejection of the bullish attempt by sellers, and now the price is heading back down for the 200 SMA.
The MKR/USD is stuck between the 20 and 50 SMAs on the weekly chart
On the weekly chart, we see that the 20 SMA (gray) acted as support during the crash in May, despite being pierced. This moving average was also broken in June, but the 50 SMA (yellow) turned into support on this time-frame, and the MKR/USD bounced off that moving average. Last week the price action gave buyers some hope, as Maker briefly moved above the 20 SMA, but it soon reversed back down, and the weekly candlestick closed as an upside-down hammer, which points down.
Nonetheless, Maker was looking more bullish than most other cryptocurrencies, which ended the week down, while the MKR/USD closed the week back where it started. MakerDao is trying to cut its transaction costs, with cryptos being much cheaper now than they were months ago, which has helped keep the sentiment positive for Maker and its stablecoin DAI as well. Maker coin holders are in the process of voting to implement a flash loan functionality.
If it is passed, the proposal will allow a maximum of 500 million Dai to be minted by individuals for flash loans, removing existing constraints that limit the value of loans, based on the volume of liquidity available in lending pools. So, fundamentals seem interesting for Maker and DAI, but for now the crypto market sentiment is keeping it from resuming its bullish trend.