Summary:
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Maker (MKR/USD) price on Thursday and Friday pulled back to trim Wednesday’s gains.
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MKR is the governance cryptocurrency for MakerDao and Maker Protocol.
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The platform is based on the Ethereum blockchain and allows users to issue and manage stablecoins.
On Friday, Maker (MKR/USD) price extended Thursday’s decline, trimming Wednesday’s gains. The platform is built on the Ethereum blockchain to allow users to issue and manage different stablecoins.
Maker tokens give members that manage Maker Dai voting rights but do not pay dividends to their holders. Users can use them to vote on matters concerning the development of the Maker Protocol, the platform that they use to issue and manage stablecoins.
Maker is among the first ecosystems in the decentralised finance DeFi space. It has since grown to become the second-largest in terms of total value locked (TLV) with over $13 billion.
Is the pullback an opportunity to buy
From an investment perspective, the MKR token appears to have recently spiked to trade at a new 6-week high before pulling back on Thursday and Friday. Maker surged to trade above the 100-day moving average after completing a channel breakout in the intraday chart.
The pullback of the last two days has pushed it from overbought conditions, creating an opportunity for a rebound.
Source – TradingView
However, with the MKR/USD still far from hitting oversold conditions, the current pullback could continue through Friday.
Therefore, investors could target extended downward profits at about $2,552, or lower at $2,220. On the other hand, if the rebound materialises at 100-day MA, the MKT token could find significant resistance at about $3,399, or higher at $3,763.
In summary, although Maker seems to have pulled back to trim Wednesday’s gains, the downward movement could continue for the foreseeable future.