Maker price has been struggling under the weight of declining markets for over six months now. MKR recently broke below the crucial $2,200 mark, setting the stage for its continued downtrend to its current price range of around $1,500. Despite MakerDAO’s plans to rebrand and build a new ecosystem to harness the potential of DeFi, there has been a decline. This comes at a time when Donald Trump is launching his own platform, World Liberty Financial.
Maker Price Drops 44% Despite SKY Rebrand Hype
The MakerDAO rebrand to Sky Ecosystem has been in the works for over ten months. This upgrade was discussed as far back as December 2023. However, it was not until May 2024 that details of the upgrade were released on the MakerDAO official forum.
The rebrand is part of MakerDAO’s endgame overhaul of its entire system and will result in the Maker (MKR) token upgrading to Sky (SKY) and the Dai Stablecoin upgrading to Sky USD (USDS).
According to the upgrade details, 1 MKR token will be redeemable for 24,000 SKY tokens. The upgrade will happen in four phases: Beta launch, SubDAO launch, Governance AI Tools launch, Governance Participation Incentive launch, and NewChain launch & Final Endgame State.
Despite these ambitious plans, Maker price has continued to shed value over the months. The MKR price has dropped by 1.6% over the last 24 hours and is trading at $1,493.
MKR Price Technical Analysis
Maker price has been on a clear downward trend since mid-August. A recent sharp decline is also evident, moving from around $2,200 to approximately $1,487.
MKR price has a key support level at $1,260, seen in the bottom horizontal line where prices are close. This has served as a long-term support zone, as visible from the previous price action in the chart, and the price is heading toward this level.
Conversely, the Maker price may find resistance around $2,200, which marks a crucial level from the last price swing. This level served as support before, but after the recent breakdown, it now acts as a strong resistance.
The sharp drop from the $2,200 level resembles an Elliott 5-wave down structure. If this is the final wave of the decline, a corrective upward move might follow.
If the price of Maker finds support at $1,260 and bounces back, it could result in a substantial 743% move to $2,200. A break above this would invalidate the current bearish thesis, setting the stage for higher price targets above $3,000.
Frequently Asked Questions (FAQs)
MakerDAO is rebranding as part of its “endgame overhaul,” shifting to the Sky Ecosystem. The MKR token will become Sky (SKY), and the Dai stablecoin will transition to Sky USD (USDS), aiming to enhance its ecosystem and harness DeFi’s potential.
MKR holders will have their tokens swapped at a conversion rate of 1 MKR = 24,000 SKY tokens. The upgrade will happen in four phases, and the full transition will culminate in a new decentralized governance structure and ecosystem.
If the price of MKR finds solid support at $1,260 and the broader market improves, there is potential for a strong recovery to the $2,200 resistance level. If this resistance is broken, the price could continue upward, potentially exceeding $3,000.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/maker-price-risks-drop-to-1200-amid-major-rebranding-to-sky/
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