thecoinrepublic.com
- 1 The Maker Price has suffered a four-day decline, shedding 13% of its market value and relinquishing the majority of its post-breakout gains.
- 2 A surge in social dominance suggests Maker’s escalating influence and acceptance within the user community.
Maker price has been facing strong selling pressure for the last few sessions, wiping over 13% of its market value. The broader market witnessed a sell the news impact amid the successful approval of the Ether ETFs, which widened the losses.
At the time of writing, Maker was exchanging hands close to $2727 after witnessing a sharp fall of four consecutive losses. Moreover, social metrics like social dominance and social volume are on the rise, which may help the crypto heal the recent losses.
Let’s analyze all the points and try to construct a comprehensive forecast for Maker’s future market trajectory.
Increased Social Metrics Could Attract Volume Inflow
Data from the financial analytics platform app.santiment.net indicates a rising trajectory for social dominance and volume metrics, signaling a growing fascination with cryptocurrency among enthusiasts.
These metrics gauge the extent of discussion, appreciation, and pursuit of the cryptocurrency within its community, reflecting its popularity, activity level, and demand. An uptick in social engagement can lead to an increase in trading volume, which may positively influence the cryptocurrency’s price.
Analysis of trading volume reveals that the day’s inflow was $107.68 million, marking a 10.96% decrease from the previous day. Meanwhile, the volume-to-market cap ratio stood at 4.2%, indicative of relatively low volatility in the market.
Can Maker Stage A Comeback?
From a technical point of view, the price is approaching the former trendline resistance, which could now serve as a support to halt further declines. Despite recent sharp drops, the breakout has not been conclusively negated. Yet the sharp fall in the last few sessions scares the investors about a possible breakdown.
On the lower side, the $2600 mark is purported to be robust support. Should the bulls manage to hold this level and propel the MKR price above $2950, it could signal the end of the retracement, potentially leading the price to ascend toward the $3200 and $3500 milestones.
Conversely, if bearish momentum persists and the price slips below $2600, this could be interpreted as a breakout failure, potentially sending the price down to test the support levels at $2500 and $2300.
Conclusion.
Maker crypto has plunged by 13% due to strong selling pressure, exacerbated by a ‘sell the news‘ effect after Ether ETFs’ approval. At the time of writing, MKR was trading near $2727. The social metrics are rising, hinting at a recovery. Trading volume has dropped 10.96% to $107.68 million, with a low volatility indicator of 4.2% volume-to-market cap ratio.
From a technical outlook, Maker is nearing a support level that could prevent further losses. On the lower side, if it holds above $2600 and breaks past $2950, it could rise towards the higher levels of $3200 and $3500. Otherwise, falling below $2600 may lead to further declines towards $2500 and $2300.