Maker is a governance token that is built on the Ethereum network. The MakerDAO allows developers to create new projects with advanced features and facilities. It was regarded as one of the early projects prepared for DeFi applications.
The application is created to make borrowing and lending easier in the crypto industry by eliminating all middlemen in the financial system. The system runs on smart contracts with self-executing lines of code to make it decentralized without the intervention of a third party.
Maker is unique because it allows the holders to participate directly in the governance process. The holders are eligible to vote for any changes to the protocol, but the voting power is determined by the size of MKR staking in the loop.
Besides that, community governance is one of the major features that drive the demand for MKR tokens. Overall, MKR is the native cryptocurrency and primary investment method on this platform. Please read our MKR price analysis and stay updated with Maker news if you are interested in a long-term investment.
At the time of writing this post, MKR was trading around $851.12. On the daily chart, $890 is a resistance level for the short term. The MKR price was in an uptrend from mid-June to August-beginning.
After that, Maker changed the momentum and took a downtrend. However, from September, it has been in an uptrend after hitting a low near $590. Daily candlesticks are forming around the upper Bollinger Bands, and RSI is above 65, which suggests bullishness for the short term.
On the weekly chart, candlesticks have been forming lower highs and lower lows in the lower range of the BB, which suggests long-term bearishness. The last bullish engulfing candle has touched the resistance of $850 around the baseline of the Bollinger Bands.
After that, the MKR price may reverse to a new lower low on the weekly chart, so we do not think it is an ideal time to invest in Maker. Indeed, it is one of the few cryptos that provided a good return in this uncertain time, so you may consider it for the long term, but it is not an ideal price for a new investment. You can add it to your watch list and invest in it when it finds support on the long-term chart.