Maker Price Analysis: MKR Propelled Beyond $4,000 as Community Celebrates Complete Decentralization
- Maker hit new record high of $4,150 after news that the network is moving toward complete decentralization.
- The community must hold MKR to vote in governing the decentralized protocol.
- A reversal is underway after Maker lost the ground above $4,000.
Maker trades at $3,460 after a tremendous rally since the beginning of April. The most significant move occurred in the last couple of days amid news that the stablecoin protocol moved toward a fully decentralized ecosystem. MKR shot massively upward to achieve a new all-time high above $4,000. A correction is underway at the time of writing and in the wake of the decentralization news.
What Complete Decentralization Means for Maker
Maker has, since inception, battled for a spot among leading stablecoin in the cryptocurrency. The MakerDAO community is very vibrant and perhaps this is the reason for the push for complete decentralization. Other leading stablecoins remain centralized such as Tether (USDT), but MKR is grounded on the ethos of decentralization.
Governance has become vital in the dynamic cryptocurrency industry, calling or decentralization. The community controls the direction the ecosystem takes. According to the Maker Foundation, the voting community will be in charge of governance. The idea is "to ensure the long-term security and sustainability of the Maker Protocol after the dissolution of the Foundation."
The community is required to hold MKR to gain voting rights. Meanwhile, the spike in demand for MKR could have occurred due to the need to acquire voting rights for the ongoing proposals.
Maker Retreats as Bulls Search for Higher Support
Following the lift to $4,150, Maker has lost significant ground under $4,000. The price teeters at $3,422 at writing amid potentially rising selling pressure. Support is envisaged at $3,100, likely to stop the bearish advances and trigger the uptrend's resumption.
However, if the bearish leg stretches, MKR will dive under $3,000 to test the buyer congestion at $2,800. Other vital support levels to keep in mind are $2,400 ad $2,000, respectively.
MKR/USD Four-Hour Chart
On the other hand, the Moving Average Convergence Divergence (MACD) suggests that buyers still have the upper hand. The narrative is validated by the MACD line divergence from the signal line, as observed on the chart.
Support at $3,400 and $3,100 would ensure market stability prevails. Here, buyers are likely to build on the support for gains back to $4,000. A break past this level could trigger more buy orders, especially with the demand for MKR still high due to the community's need to participate in the transition process.