Crypto Update: Maker breaks consolidation but will the run continue?
Hi traders, today we’re looking at Maker (MKRUSD). Buyers produced a solid break higher this week but things have started to stall. Could we see a new move back to test August highs or could this be a flash in the pan?
Maker or MKRUSD as shown on the chart below when quoted to the USD is an Ethereum token that’s seen as a utility token or governance token. It’s used as a recapitalization resource of the Maker system. The purpose of the Maker system is to generate another Ethereum token, called Dai, which seeks to trade on exchanges at a value of exactly 1 USD.
Fun fact, MakerDAO was the first DeFi protocol to reach a total value locked (“TVL”) of $1 billion dollars in 2020.
What’s next for Maker? Below, we are primarily using stage analysis on the daily Maker chart. Stage analysis breaks down market segments with the idea of identifying a potential behaviour a market might be in. For more information please look into ‘market stage analysis’. From the markings below I’m sure it’s self-explanatory.
We can see that the market moved from a stage 4 decline into a stage 1 base. We can see the breakout that occurred this week which could be the start of stage two (upswing). For this idea to hold firm we want to see price continue to remain above the new uptrend. I move back below could show a loss in momentum and a move back into the range and a possible test of range support. If we see price continue to move higher we are looking for resistance to potentially come back in from 3817 – 4000.
We will be watching with interest to see buyers next move.