- The Maker price has been in a sharp downward trend.
- It has crashed by more than 75% from its all-time high.
The Maker price has been in a strong bearish sell-off that has pushed it to the lowest point in 52 weeks. MKR is trading at $1,604, which is the lowest it has been since January last year. It has retreated by more than 75% from its all-time high in 2021.
Maker and DeFi tokens fall
Maker is one of the biggest decentralized finance (DeFi) platforms in the world. According to DeFi Llama, it is second only to Curve Finance. It has a total value locked of over $15 billion. MKR, its native token, has a market capitalization of $1.4 billion.
Maker is basically a decentralized autonomous organization (DAO) whose primary product is known as Dai. Dai is a stablecoin that is soft-backed by the US dollar. According to DeFi Llama, Dai has a total market value of more than $9.6 billion, making it the fifth-biggest stablecoin in the world after Tether, USD Coin, Binance USD, and TerraUSD.
Maker was built using Ethereum’s technology and anyone can create it using smart contracts known as Collateralized Debt Positions (CDPs). In the past few years, developers have evolved the platform to enable it to accept multiple collateral asset types.
There are several reasons why the MKR price has crashed in the past few months. First, the decline is part of the overall crash in assets. Most cryptocurrency prices have declined sharply in the past few months. Indeed, their total market capitalization has collapsed to about $1.5 trillion.
Second, there is the lingering fear about the Federal Reserve. The bank is expected to deliver multiple interest rate hikes this year and end its quantitative easing policies,
Further, the ongoing crisis in Europe has had a negative impact. On Thursday, Vladimir Putin announced that he had decided to attack Ukraine.
Maker price prediction
The MKR price is trading at $1,585, which is the lowest it has been since February 2021. On the daily chart, we see that the sell-off accelerated when the coin moved below the key support level at $1,833. It has moved below the 25-day and 50-day moving averages while the MACD has moved below the neutral line.
The Relative Strength Index (RSI) has moved below the oversold level. Therefore, the path of the least resistance for the Maker price is lower, with the next key support being at $1,400.
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