Maker’s MKR token has been on a rollercoaster ride in recent weeks. After falling from its yearly high of $4,075 in April, it found temporary support at $2,150. However, a breakdown in early August sent the price tumbling to a low of $1,720. But wait, there’s more! A recent surge, fueled by positive news, has brought MKR back to that critical $2,150 resistance level. So, the question on everyone’s mind: can MKR break through and continue its upward climb?
Grayscale To The Rescue?
On August 14th, Grayscale, a leading digital currency investment firm, announced a new single-asset fund specifically for MKR. This move aims to expose a wider range of investors to the entire Maker ecosystem, potentially boosting demand and pushing the price higher.
Clearing the Legal Hurdles
Adding to the positive sentiment, the DeFi Education Fund recently acquired a patent related to Oracle technology, previously held by True Return Systems. By dedicating this patent to the public and resolving a lawsuit against Maker, the fund has removed a potential roadblock and created a more stable environment for future growth.
Looking at the daily chart, the picture gets a bit muddled. While the price rebounded to the $2,150 area, technical indicators like RSI and MACD send mixed signals. This leaves investors unsure whether this is a retest of the resistance level or a rejection.
Taking a step back and analyzing the broader market, the long-term outlook for MKR seems brighter. Wave count analysis suggests a five-wave upward trend in play, with the recent low potentially marking the completion of wave four. This bounce also aligns perfectly with a key Fibonacci retracement level, adding further weight to the bullish case.
Fibonacci Paints A Rosy Picture
If the current trend continues, the Fibonacci retracement method predicts a potential high of $5,525 for MKR, nearing its all-time high of $6,391. This scenario would be a significant turnaround from the recent lows.
While the short-term direction for MKR remains unclear, the confluence of positive news events and a potentially bullish long-term trend paints a promising picture. Investors should keep a close eye on the price action around the $2,150 resistance level. A decisive breakout could pave the way for a significant rally, while a rejection might lead to further consolidation or even a decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
