Maker has been the best performing among the top 100 crypto assets, preceding Zcash, which has a 10.5% gain. The weakened bearish strength seen in the last few months shows which force dominates the MKR market.
The Maker (MKR) token has benefited from the death of the LUNA cryptocurrency and the loss of stability of UST. Those events have made this the best week for the former since December 2021.
MKR is trading at around USD 1,467 and has accumulated a 20.3% over the last seven days. While its daily trading volume is above USD 106.30 million, its market capitalization is about USD 1.31 billion. It occupies 51st place in the cryptocurrency ranking, according to CoinGecko.
That sharp rise has made Maker the best performing among the top 100 participants in the crypto market over the past seven days. It precedes Zcash, which has a 10.5% gain, while only stablecoins occupy positions 2 to 8 in the ranking.
The Stablecoin DAI Is the Main Competitor for UST
Maker is the DeFi protocol behind the stablecoin DAI, the main competitor for UST. While DAI is suitable for payments and savings, MKR has a volatile price due to its limited supply.
Investors have turned to more reliable platforms since the Terra ecosystem has crashed and UST has lost parity with the US dollar. Maker is among those that have benefited the most from that situation.
The crypto market crash has severely hit the DeFi ecosystem, with liquidity losses of around 45% across multiple protocols. In the case of Maker, it has lost just 9.64% over the last seven days.
Of course, fear and mistrust have increased rapidly in the market in the last few days. However, given that DAI enjoys complete backing, its capitalization could rise thanks to the capital fleeing Terra.
The Technical Analysis of the Price of the Maker Token
The weekly MKR/USD chart shows that the scenario is optimistic due to the recent rejection of low prices.
The long-term trend in the value of the Maker token is bullish. The decline it has suffered over the past few months is only a necessary pullback to this previous direction.
The bearish strength of the last few months is considerably weaker than the previous bullish rally. That shows which force dominates the market.
The recent crash was about to make the Maker token hit the 88% Fibonacci level. That is an ideal level to mark the bottom of a deep correction.
Thanks to the recent rejection of low prices, the price seems to have reached the bottom. However, it is best to wait for more accurate confirmations to rely on that view.
Before confirming that the bulls have regained control of the short-/medium-term trend, the price must overcome resistance at USD 2,092. It might also break the descending line that has been forming.
If those confirmations did not happen, there could be more selling or at least a sideways behavior in the short term.
By Alexander Salazar
