Maker's MKR token saw a strong 8.43% rally over the past 24 hours, climbing from $983 up to $1,065.88 as of July 24, 2023. This surge builds on an already impressive monthly uptrend for MKR, providing an opportune time to analyze key technicals and drivers.
Examining the Bullish Momentum
MKR has seen a tremendous 44.81% price increase over the past month, accelerating higher over the past week with a 13.74% 7-day gain. The 50-day moving average recently crossed bullishly above the 200-day MA, signalling growing upside momentum.
Short-term indicators also look positive. MKR's 8.61% surge in the past hour suggests bulls are in control. The relative strength index (RSI) now sits above 65 which reflects overbought conditions and upside exhaustion could be near.
Trading volume hit $156.23 million over the past 24 hours. This high volume confirms increased interest as MKR pushes to new multi-month highs. The next resistance level sits around $1,150.
Macro and Technical Factors Driving MKR
The recent strength in Maker seems to be driven by a few key factors. Broader optimism in crypto markets is providing tailwinds, especially for DeFi and governance tokens like MKR.
Maker is also benefiting from growing platform usage and revenues. Higher protocol fees are flowing to MKR holders, highlighting a strong fundamental backdrop.
Technically, MKR broke out of a multi-month consolidation range between $800-$1000. This breakout triggered added buying pressure as momentum traders piled in.
Maker's pivotal role in DeFi and progressive decentralization roadmap are also attractive qualities for crypto investors allocating to the sector.
Price Outlook and Predictions
MKR looks poised to see further near-term upside as it rides bullish momentum higher in the days ahead. The target to watch is the 2021 high around $1,250. This would mark a breakout to new all-time highs.
However, overbought RSI readings suggest a short-term pullback could happen first. Support sits at $1,000 and around $950 on any dips lower. As long as MKR holds these levels, the uptrend remains intact.
I expect MKR will consolidate between $1,000-$1,200 in the near-term and potentially make a push above $1,250 later this year if DeFi strength continues. Long-term fundamentals look positive.
How Does Maker's Upcoming Decentralization Impact MKR?
Maker isTransitioning to permissionless decentralized governance in the coming months. This will allow anyone to participate in voting/staking without KYC requirements.
Broader community governance should make Maker more decentralized and resistant to capture. It better aligns with crypto ethos and removes a central point of failure risk.
For MKR holders, decentralized governance unlocks greater potential upside if it attracts more capital to stake on Maker. However, it could also introduce new risks like governance attacks that need mitigating.
Overall, Maker's shift to permissionless governance signals a maturing protocol and should strengthen network effects long-term - a positive for MKR price outlook.
Is Maker's Stablecoin DAI Still a Key DeFi Building Block?
As the first decentralized stablecoin, DAI remains a foundational DeFi primitive even as competitors emerge. DAI liquidity/integration across DeFi is its main competitive advantage.
However, USDC has overtaken DAI in market cap terms while others like Frax offer interesting innovations. DAI dominance is waning but it still plays a vital role in DeFi lending/borrowing pairs and transactions.
DAI also benefits from brand recognition as a tried and tested stablecoin. Security is a major concern lately so DAI's longevity provides trust.
Maker must continue innovating DAI and boosting adoption/use cases to maintain its status as a DeFi cornerstone. But for now, it remains one of the most utilized stablecoins in the ecosystem.