MKR, the governance token for MakerDAO, a leading stablecoin lending platform, has witnessed a significant decline in recent weeks. It is currently priced at $1,206, reflecting an 11% drop over the last week.
The altcoin has reached its lowest trading price since September 2023. Should the downward trend persist, MKR might fall below $1,000 for the first time since 2023. This analysis elaborates on the reasons behind this situation.
Potential Challenges for Maker Holders
Since August, MKR’s trading price has remained below its Ichimoku Cloud. This indicator tracks market momentum and helps identify areas of potential support and resistance.
Read More: Understanding Tokenized Real-World Assets (RWA)
A price drop below the Ichimoku Cloud suggests a transition from a bullish to a bearish trend. If the asset maintains its position beneath this cloud, it strengthens the downtrend. A significant resurgence above the cloud will likely be challenging without a considerable surge in demand.
Unfortunately, there has been a notable lack of such demand in the MKR market in recent weeks, as shown by its declining Chaikin Money Flow (CMF). This metric, which quantifies the flow of money in and out of an asset, has reached -0.40, its lowest point since August 2022.
If both the asset’s CMF and price continue to decline, it highlights diminishing buying interest and intensifying selling activity. This correlation between dropping prices and falling CMF supports a bearish market sentiment, suggesting capital is exiting the asset, complicating any recovery efforts unless market attitudes change.
MKR Price Prediction: A Shift in Sentiment Required
Currently, MKR is priced at $1,206. According to the altcoin’s Fibonacci Retracement levels and the mounting selling pressure, MKR’s value could potentially decrease to $511, the lowest since May 2023.
Read More: Maker (MKR) Price Forecast 2023/2025/2030
Nonetheless, this forecast could shift if market sentiment turns from bearish to bullish. In this scenario, MKR could aim to overcome the resistance levels established by its Ichimoku Cloud at $1,954 and $2,632. A successful breakout could potentially lead to a rally towards a six-month high of $4,118.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be taken as financial or investment advice. BeInCrypto strives for accurate, unbiased reporting, but market conditions can change without warning. Always perform your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish