Crypto Daily: Maker (MRK) Is About To Jump And You’re Still On Time

As the Bitcoin Halving begins to vanish behind our backs, the market starts looking to opportunities aside from the world’s most cryptocurrency. And today, the opportunity will be covering is Maker.

Since its launch in 2016, Maker DAO has grown into one of the largest projects in the industry, and it already takes a leading role when it comes to the Decentralized Finance (DeFi) sector.

Maker DAO offers two cryptocurrencies: DAI and MKR. The first one is a stablecoin that keeps a 1:1 ratio with the U.S. dollar. This Ethereum-based stablecoin is not hard-pegged to the dollar, so there might be some small value changes over time. Yet, it’s always pretty close.

In order to get DAI, you can either exchange other tokens for it or borrow some using other cryptocurrencies as a collateral. Of course, you’ll be charged an annual interest rate of ~7%.

Unlike other stablecoins out there, like USDC or USDT, DAI is backed by a reserve of dollars in some bank account. Instead, DAI achieves the so-needed stability through a mixture of external market forces, internal financial incentives, and policy tools controlled by MKR token holders.

The second, well, it’s the token that makes that possible. The Maker (MKR) token is a management token, meaning it gives you the right to vote and speak your voice on decisions affecting the Maker DAO network, and the administration of the DAI stablecoin.

Fundamental Reasons To Invest On MKR

As you would expect, investing in a stablecoin makes not a lot of sense since it’s value won’t variate enough to generate you huge profits. On the other hand, putting your bucks on MKR might be a choice worth considering. Here are 6 fundamental reasons to do it:

1. Over 15 funds have been invested in the project at various stages of its development, including Andresen Horowitz, Dragonfly, and Paradigm. In addition, the latter has been actively increasing its share of MKR tokens following the collapse of the cryptocurrency market on March 12, 2020.
2. Maker DAO is continuously evolving and, in the past six months, the project has added BAT and USDC as collateral options. Also, they have launched an innovative asset on the Ethereum blockchain pegged to the price of Bitcoin — Wrapped Bitcoin (WBTC).
3. Supporting USDC is a good indication of the project’s close relation with Coinbase and Circle, which could potentially participate as investors down the road.
4. In February 2020, Maker DAO announced a partnership with Simplex — a popular (yet very expensive) service for buying cryptocurrency with fiat money. Clients of Simplex can now offer their clients DAI as an extra purchase option.
5. Significant dominance in the DeFi segment. At the moment, the share of Maker DAO is above 50% of the total market.
6. In just 2 years, the capitalization of DAI grew from $10 million to $110 million. And it keeps growing month by month.

Technical Reasons To Invest On MKR

Fundamentals are very important for defining whether an investment is worth our time. But they’re not the only factors that matter. Let’s take a moment and review the technical picture, too.

The chart above shows that MKR is currently sitting at its strongest support level so far. The price moved to this level after the March drop.

• Uptrend likely with upcoming reversal of moving averages
• Small moving averages (EMA 20, 50) went under the EMA200
• The MKR price shows an explicit wave pattern structure
• MKR token currently at a strong support level

In the medium term, MKR has a good chance of reaching $700, $800, and $900 price levels. This is confirmed by the aforementioned fundamental factors. If you decide to open long positions at the current $300 — $320 range, the risk/profit ratio will be 1:3, 1:4 and 1:5, respectively.

In a nutshell

Both fundamental and technical factors indicate that MKR is in an attractive position. While MKR has moderately recovered from the crisis zone triggered by March 12 plunge, there’s still a long way to go.

Medium-term analysis:

Buy MKR: $300 — $320

Sell MKR: $700 — $800 — $900

Risk/Profit Ratio: 1:3–1:4–1:5

Get MKR with Crypterium

The MKR token is available on the Crypterium Wallet. You can easily exchange your Bitcoin for Maker tokens at the best market rates. Try it now!

Disclaimer: You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Cryptocurrencies are risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital. The past performance of cryptocurrencies is not a reliable indicator of future results.