The Maker is a smart contract platform alongside the DAI coin. It works as a hedge currency to provide stability as an alternative to major coins. It is a stablecoin system on the Ethereum blockchain. Rune Christensen is the CEO and founder of MakerDAO. DAI is a stablecoin, suitable for collaterals, savings, and payments.
The MakerDAO team has developed a fully inspectable and transparent stablecoin system which is a trustworthy asset-backed currency. It was launched in December 2017 as one of the first stablecoins on the Ethereum blockchain, and it only accepts ETH as collateral.
If you consider the use cases, Maker targets four market segments, such as:-
- Financial Institutions
- Gambling Market
- Accounting System
- International Trade
MKR is a utility, governance, and recapitalization token on this platform. The price is volatile because of its unique mechanics’ role in the system. DAI and MKR tokens are issued by the same community to run the system efficiently.
At the time of writing this technical analysis, the Maker price was trading around $929.82, and it has been consolidating within a range. We can expect a bullish reversal if MKR price crosses the strong resistance level of $1050.
Most of the technical indicators are neutral, and candlesticks are trading towards the baseline of the Bollinger Bands, while RSI is around 48, which does not suggest bullishness in the short term until it crosses the immediate resistance.
Even on the weekly chart, Maker has been in a downtrend. Though the candlestick is red, MACD has formed a green histogram which may suggest a bullishness.
We do not think it is a good time to invest in Maker (MKR) for the long run because it has broken the strong support level of $2000 long ago. In the short term also, traders should not invest a huge amount in this token until it crosses the level of $1000.