As of now, Maker [MKR] is being traded at $1,523 with a slight decline of 0.58% over the past 24 hours. Regrettably, it has not been able to keep pace with the strong performance of leading alternative coins this year.
Remarkably, its market capitalization has slipped from $3.66 billion reported in April to the present $1.3 billion.
Nevertheless, despite the underwhelming performance, the MakerDAO network has witnessed notable expansion in December.
DeFiLlama data reveals that monthly fees on the network have reached an all-time high of above $40 million, while monthly revenues have exceeded $26 million.
If this upward trajectory sustains, it could spell good news for MKR’s price outlook. Nonetheless, the weekly chart for the altcoin signals a mix of positive and negative indications.
Assessment of MKR Price Movement
Maker has been engaged in trading within a broadening wedge pattern on its weekly chart, which typically indicates a weakening selling pressure that could pave the way for a bullish reversal.
For MKR to shake off the bearish pressure, there needs to be an influx of buyers into the market. However, the Chaikin Money Flow (CMF), currently at a negative value of -0.11, indicates that this scenario is yet to materialize.
Notably, the CMF has remained in the negative territory for five months, suggesting that the price action has been dominated by sellers.
Furthermore, the Awesome Oscillator (AO) points to a persistently bearish momentum driven by the negative histogram bars.
The upper threshold of the broadening wedge pattern poses a sturdy resistance level. Should MKR breach this level with strengthening buyers, it could once again target the 2024 peak above $4,000.
Examination of Critical Demand and Supply Zones
Within the $1,440-$1,480 price range, Maker’s demand zone is identified, with 2,530 addresses having acquired the token. These buyers may act as steadfast defenders of this zone in case of an MKR decline, rendering it a robust support area.
Conversely, an upsurge beyond $1,700 could encounter resistance from the 1,290 addresses that purchased MKR between $1,667 and $1,716.
These address holders might opt to sell once profitability is attained, potentially slowing down the upward momentum.
Diminished Speculative Interest
Data from Coinglass indicates a dip in speculative activity around MKR given the decline in open interest.
Following a peak above $140 million earlier this month, MKR’s open interest has nearly halved to $77 million.
This decline implies a reduced inclination among derivative traders to initiate new positions on Maker, potentially leading to a phase of price consolidation.
Furthermore, it reflects a bearish trend marked by diminished enthusiasm among traders regarding future price developments.