The death of the LUNA token and the loss of stability of the UST, have been favoring the MKR (Maker) token, which had its best week since December 2021.
At the time of this writing MKR is trading at $1,593, accumulating a gain of 1.32% in the last 24 hours and an incredible 41.32% in the last 7 days.
Thanks to this strong rise, today this coin is the one that has risen the most in the last 7 days, among the 100 largest in the crypto market. Below, with a much smaller gain, we find ZCash, with 1.08%; while from position 2 to 8 we only find stablecoins.
Maker was Terra’s main competition
The DeFi Maker protocol is behind the DAI stablecoin, the main competition for UST.
Now that the Terra ecosystem has bled to death, and the DOLLAR lost its parity with the dollar, investors have begun to look for more reliable platforms. Maker has been one of the ones that has benefited the most from this.
In fact, even though the DeFi ecosystem has been hit hard, with liquidity losses ranging from 45% across multiple protocols, Maker has lost only 9.64% in the last 7 days.
Fear and distrust have clearly increased at high speed recently; however, because DAI is fully backed, its capitalization could increase as the capital that fled Terra begins to look for a place within the market.
The technical outlook is quite bullish for the token Maker
On the weekly MKR vs USD chart, the scenario is quite positive, thanks to the recent rejection of low prices.
The long-term trend is clearly bullish. The drop that we have been seeing the last few months is simply a necessary setback for this previous direction.
The bearish strength of the last few months is quite less than that of the previous bullish rally. It is clear which is the dominant force.
With the recent crash, the token Maker was on the verge of reaching the 88% Fibonacci level, an ideal level to mark the bottom of deep corrections.
Now, thanks to the recent rejection of low prices, it seems feasible to think that the bottom was reached. However, more accurate confirmations should be expected to rely on this vision.
Bulls should now wait for the resistance at $2,092 to be overcome, to confirm that control of the short/medium-term trend has been retaken. They could also expect the downline that has been drawing the price to be crossed.
As long as these confirmations do not occur, we could see more sales in the short term, or at least a sideways behavior.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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