Maker has had such a rollercoaster ride so far this year; it started the year below $600 and surged to $6,300s by the beginning of May, but then reversed back down and tumbled to $1,850 by the last week of that same month. Now, it seems like MKR/USD has turned bullish again.
During the bullish momentum of the first several months, Maker coin was finding support at moving averages. The 20 SMA (gray) was pushing the price higher during that bullish period, while the 50 SMA (yellow) was holding as support during the consolidation in March.
These moving averages were broken during the crash and Maker lost more than 70%. The 200 daily SMA (purple) held on the first attempt, but was eventually broken as it kept moving higher. Although, the lows also got higher for Maker coin, which was a bullish sign, while many other cryptos kept making lower lows.
But, the reversal in the crypto market and the improvement in the sentiment helped Maker reverse higher too. MKR/USD has been quite bullish since then, more than doubling in value until the middle of this month. But, it has found it hard to push above $4,000 and has been trading below that big round level for more than a week.
I thought that the break above $50,000 in BITCOIN was going to pull Maker above $4,000, but Maker buyers have hesitated again. Although, the increase in the GameFi world will be keeping Maker in demand. On August 2nd, Gamestarter launched on DAO Maker through its SHO public sale. Other gaming projects will join Maker-Dao, so chances are that the $4,000 level will be broken soon in MKR/USD.
It has been sticking to that big level today, but it is just pulling back lower now. Although, I don’t think that the pullback will last and Maker will turn bullish again soon. We might even decide to buy the break of the $4,000 level, by the way, you will have to follow our forex signals page for that.