Maker Price Up By 6.60% – Time To Buy MKR?

• Investors looking to buy MKR would be encouraged by the asset’s 24-hour performance.
• Maker-based protocol has secured a multimillion-dollar financing deal with Tesla. 
• MKR’s technicals are looking promising following its hot start to the week.

Maker (MKR) has garnered an ROI of 10691.88% in just five years. With an increase of 6.60% in 24 hours, the asset continues to deliver impressive gains for investors. With the general crypto market looking to rebound, some investors might be looking to buy MKR.

Doing your research before you buy MKR is key. What are the fundamentals behind the coin? Is it technically sound? We’ll answer all of these questions in this article.

MKR On The Verge Of Disappearing

While investors might be feeling the urge to buy MKR, a new proposal on the MakerDAO community appears to be rocking the asset’s proponents.

Last month, the proposal shared on the MakerDAO community postulated the replacement of MKR as the DAO’s native token. It presented a possible improvement over the current MKR tokenomics model, which the author described as a “buyback and burn” mechanism. The author explained that there is a lack of target incentives since the model returns all capital to MKR holders.

If passed, the Maker protocol could replace MKR with a new token called StkMKR. MakerDAO community members are still pondering over it.

Scoring On Real Estate

Despite the debate over the continued existence of MKR, the asset continues to grow. Last week, 6s Capital, a commercial lender powered by MakerDAO, closed a $7.8 million financing deal with auto manufacturing giant Tesla.

6s has claimed that the automaker will use the loan to finance a new repair and treatment centre. The credit line is also expected to grow to $14.2 million upon completing another project from Tesla.

With the auto manufacturer pursuing different expansion lines and building on its crypto integration, a deal with a decentralised finance (DeFi) protocol could be a precursor for what is to come – or, at the very least, a catalyst for other large companies to perform crypto deals as well.

MKR Technical Analysis: Technicals Support A Buy

MKR currently trades at $2,464. This is a jump of 6.60% in the past 24 hours. With this, MKR has beaten the broader market’s performance – the latter is up by just 1.80% in the same period.

MKR has risen above all of its major moving average (MA) indicators – from the 10-day MA price of $2,447 to the 200-day MA value of $2,215. This should give investors some confidence to buy MKR, but watching how the coin performs is also important, especially over the next few hours. With its 10-day MA so close to its price, MKR should push upwardly to maintain its technical appeal.

The asset’s 23.6% Fibonacci retracement value stands at $2,467. There’s a high probability of the asset crossing this support level in the next 24 hours, especially if the market continues its bullish run. Once it does, the next realistic resistance for MKR would be $2,500. Investors looking to buy MKR would have to see how it performs with its current Fib support level.

The push to buy MKR is supported by the asset’s positive moving average convergence divergence (MACD), indicating a buy signal. However, MKR’s relative strength index (RSI) of 63.31 shows that the asset is approaching the overbought level. Of course, that shouldn’t be much of a deal-breaker since MKR’s other technical indicators are strong.

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