Altcoin Maker (MKR) has been on a remarkable bull run in recent days, witnessing an astounding 45% surge over the course of just one week. This impressive performance has placed MKR at the top of the weekly gainers’ list, outshining even the major cryptocurrencies.
According to CoinGecko data, MKR’s price has been steadily climbing, with a notable 42% gain among top performers within the last 30 days. However, in the daily chart, there has been a minor setback of about 3.60%, currently trading at $986.93.
Throughout June, MKR experienced two significant price rallies. On July 1, it surged 21%, soaring past $830 from the previous day’s $687. The token’s value further increased by 8% on July 3, reaching a 3-month high of $929.87, an achievement not seen since March.
Market sentiment appears bullish, corroborated by various technical indicators. The Fear & Greed Index stands at 29.19, signifying extreme fear among investors.
Nevertheless, on July 4, 2023, most technical analysis indicators leaned towards a bullish outlook, although some hinted at bearish signals, indicating an overall positive sentiment for MKR price predictions.
Based on the current prediction, the value of Maker is anticipated to surge by an impressive 112.21% by the end of July, potentially reaching around $2,091.47. However, the token is presently trading below the 200 simple moving average, and the 50-day simple moving average shows a buy signal.
Further analysis suggests that the 200-day SMA may soon drop, projecting a potential price decrease to $687.52 by the end of December. One essential indicator to watch is the Relative Strength Index (RSI), currently sitting at an undisclosed value, which signals the potential for overselling or overbuying of the cryptocurrency.
Well, Maker (MKR) has seen an incredible rally, outperforming major players in the market. While technical indicators paint a bullish picture, investors should stay vigilant as various factors can influence MKR’s future trajectory.
Maker (MKR) Price Driving Factor
The recent surge in MKR price can be attributed to the proposed multichain strategy of Spark Protocol, a move aimed at expanding its reach and deployment across different blockchain networks.
On June 30, MakerDAO proposed the Spark Protocol Multichain Strategy, building upon the previous strategy introduced by PECU and continuing the shift of work away from Maker Core.
Phoenix Labs, the driving force behind the proposal, firmly believes that the path to growth lies in reaching out to users on Layer 2 solutions (L2s) and other chains.
They have put forth a comprehensive framework for expanding into compatible chains, with a focus on strong business cases, scalability, strategic value, and security considerations.
The proposed strategy follows a phased rollout approach to enhance parallelization. Phase 1, designed to be entirely permissionless, involves deploying a fresh instance of Spark Lend on a remote chain in coordination with the chain’s developer team.
Borrow rates will be set manually, and liquidity seeding is encouraged to simulate user demand. The governance relay, technical requirements, and compatibility with cross-chain support are critical considerations during this phase.
Phase 2, referred to as Spark Bridge Deploy, centers around activating the cross-chain Conduit module, allowing AllocatorDAOs to deposit and withdraw funds from the Spark Lend instance.
The Spark Bridge, serving as the successor to dss-bridge, facilitates smooth transitions and utilizes the most liquid version of DAI through existing token bridges.
Additionally, the Spark Bridge’s technical requirements are yet to be defined, and assessments of domains and collaterals will be published to assist MKR holders in their decision-making process.
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