As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of ups and downs, bull runs, and bear markets. The current state of MakerDAO is one that has caught my attention, not because it’s a new player, but because it’s an established name struggling under the weight of declining markets.
For more than half a year, the price of Maker has been battling against the downward pressure from faltering markets. Lately, MKR dipped below the significant $2,200 level, potentially leading to further decreases, with its current value hovering around $1,500. The anticipated rebranding and ecosystem development by MakerDAO aimed at leveraging DeFi’s potential hasn’t seemed to halt this decline. This slump coincides with Donald Trump unveiling his new venture, World Liberty Financial.
Maker Price Drops 44% Despite SKY Rebrand Hype
The transformation of MakerDAO into Sky Ecosystem has been under development for approximately ten months now. As early as December 2023, this change was initially brought up for discussion. It wasn’t until May 2024 that specifics about the upgrade were unveiled on the official MakerDAO forum.
As part of a comprehensive revamp, MakerDAO is planning to rebrand. This rebranding will lead to an upgrade for the Maker (MKR) token, which will become known as Sky (SKY), and the Dai Stablecoin will transform into Sky USD (USDS).
As outlined in the update plan, each MKR token can be exchanged for 24,000 SKY tokens. This upgrade process will take place over four stages: Beta deployment, SubDAO initiation, Introduction of Governance AI Tools, Implementation of Governance Participation Incentives, and NewChain launch & Ultimate End State.
Although the plans are quite grand, the value of Maker has been decreasing for several months now. In fact, within the past day, the MKR price has slipped by 1.6%, currently being traded at approximately $1,493.
MKR Price Technical Analysis
The cost of making something has been steadily falling since mid-August, and there’s also been a notable drop more recently. It went from roughly $2,200 to about $1,487.
The significant support for MKR‘s price can be found at around $1,260, which is indicated by the flat line where prices are close together. This area has proven to be a long-term zone of support, as suggested by past price movements shown on the chart. Currently, it appears that the price is moving towards this level.
Instead, you might say that the Maker price could encounter resistance at approximately $2,200, as this level is significant because it was previously a point of support during a previous price movement. However, following the recent downturn, this same level has become a formidable barrier to further increases in price due to its new role as resistance.
The significant decrease from the $2,200 mark appears similar to a five-wave downtrend according to Elliott theory. If this is indeed the last wave of the descent, it could be followed by an upward correction.
As an analyst, if Maker’s price finds solid support at $1,260 and subsequently rebounds, it could potentially trigger a significant surge of up to 743%, propelling the price to approximately $2,200. A breach above this level would challenge the current bearish perspective, paving the way for further price projections surpassing $3,000.
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2024-09-18 07:47