Maker Price Analysis: MKR/USD Jumps 6%, While Rest of the Market Slumps

  • Maker is outperforming most of its peers with the recent gains produced.
  • The surge higher has put MKR into the top 20 cryptocurrencies by market cap.

Maker (MKR) initially made solid gains as much as 6% on Tuesday before cooling. This move was very much out-performing the rest of the market. This being part of a strong surge the upside seen since 25th November, having jumped a chunky 35%.  As a result, MKR has burst into the top 20 coins by market cap. At the time of writing, this is seen at $296 million, ahead of Bitcoin Gold’s market cap of $279 million.

Decentraland Platform to Leverage MKR

Decentraland, a virtual reality platform powered by the Ethereum blockchain, will be auctioning their digital spaces. These are also known as “LAND”. Users will be able to purchase these LAND parcels, using MKR and Dai tokens. This comes after Decentraland had its first LAND auction in January 2018. They marked this as a huge success, where users spent over 161 million MANA – Decentraland’s ERC20 token on LAND. This was said to equal roughly $30 million at the time.

This time around, Decentraland have noted that there are currently, 9,300 of LAND parcels. These have no ownership, and as a result the community of Decentraland are opting for a second auction. This move will contribute towards distribution of the virtual real estate. They have noted the use of MKR and Dai, will make it much easier for people to join. All facilitated, under this partnership with MakerDAO.

Technical Review – MKR/USD

MKR/USD daily chart

Maker on 25th November, like much of the market, formed a bottom after the bloodshed that hit the vast majority of cryptocurrencies. MKR/USD stabilization kicked in around the $300 price territory, where a known demand area is seen. The last time the fell down to this area was on 12th September. After falling into this territory, buyers pilled in, sending MKR/USD rocketing up around 170%. As a result, the price printed a high at $810, which at the time was the highest level since June.

Furthermore, given the recent bottom as described above, it has formed a double bottom technical pattern via the daily chart view. It would mean the neckline is seen up at the mentioned high print, $810. Should current upside momentum maintain its current course, a retest could certainly be achievable up within that high area.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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