As the recovery of the crypto market continues, there are some participants who are standing out above others, with quite interesting gains. Token Maker (MKR) is one of those that is standing out, accumulating a 98% gain from the low of $ 1,829.45 reached last May 23.
At the time of this writing, MKR is trading at $ 3,639.00, achieving a magnificent recovery, thanks to a protocol that is defended and widely used by its users.
The upward trend of the amount of money in loans on this platform was hardly stunned by the recent collapse of the ecosystem, even soon we could see a new maximum of this value, located today at $ 4,581 million.
With a total locked value of $ 7.729 million, Maker is the 3rd largest protocol in the DeFi ecosystem. Although we saw this value drop considerably after the recent crypto market crash, the uptrend is already picking up.
Total blocked value and indebtedness on the Maker platform. Source: DeBank.
If you don’t know, MKR is the governance token of a decentralized platform whose main purpose is to offer loans to its users.
An active development community, and a booming DeFi ecosystem, are driving growth in platform adoption. Some of the relevant enhancements made in May by the Maker DAO community include new Vault types to the Liquidations 2.0 framework, votes to update Oracle, and central unit budgets.
In May, the MakerDAO community added additional Vault types to the Liquidations 2.0 framework and voted on Oracle updates, Core Unit budgets, and more.
Get caught up with the latest Making Maker: https: //t.co/DsTxc4hjw4
– Maker (@MakerDAO) June 1, 2021
Token Maker (MKR) Technical Analysis
In the weekly time frame we see how the price of MKR managed to defend the support at $ 2,036.47, and now we are seeing a strong rejection of the bearish intentions, most likely signaling that the bottom of the fall has been reached, and a new momentum may be starting.
If we plot the Fibonacci retracement tool, we notice that the price stopped at 78.6% (healthy retracement level). Meanwhile, the strong rejection of bearish intentions may be telling us that a search of -27% and -61.8% respectively, would be sought next.
If so, a new all-time high of $ 7,451.12 will be the next target. Higher up, -61.8% marks us $ 9,024.75.
For us to think of a bearish scenario, the support at $ 2,036.47 must be crossed, which would leave the ground free to $ 1,447.6. This scenario is unlikely at the moment, considering the undoubted dominance of the bulls.
Token Maker weekly chart. Source: TradingView.
MKR still needs to give us a confirmation signal
Although I am making an optimistic forecast, still from the daily chart we see how the bulls have not fully regained control of the short-term trend.
We are really seeing a very volatile lateralization, but one that clearly shows a depletion of the bears.
A well defined Shoulder Head Shoulder may be signaling a trend reversal, but to confirm this, resistance at $ 4,300 must be broken. As long as it does not happen, we can see whiplash to the downside of little concern.
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