Is MKR buy opportunity after the current dip?

MKR/USD has weakened from $3624 below $2000 since the beginning of November 2021, and the current price stands at $2055.

One of the largest dapps on the Ethereum blockchain

The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, is an open-source project that was built on the Ethereum blockchain and enables users to create currency.

Maker is the first decentralized finance (DeFi) application that has achieved significant adoption, and it is important to say that Maker is one of the largest dapps on the Ethereum blockchain.

The Maker Protocol is managed by people who hold its governance token MKR, which is designed to minimize the price volatility of its own USD-pegged cryptocurrency, DAI.

Users can generate DAI stablecoin by depositing collateral assets into Maker Vaults within the Maker Protocol, but MKR holders govern the protocol and the financial risks of DAI to ensure its stability, transparency, and efficiency.

Voting is a very important component of the Maker decentralized governance process, and one MKR token locked in a voting contract equals one vote.

On the other side, DAI is designed to function as a store of value even in a volatile market, and every DAI in circulation is directly backed by excess collateral.

All transactions with DAI are visible on the Ethereum blockchain, and users can also buy DAI from many exchanges or receive it in the form of payment.

DAI stablecoin can be used for all types of transactional purposes, and there are over 400 apps and services currently that have integrated DAI. DAI is held in cryptocurrency wallets or within platforms, and this coin offers economic freedom to anyone.

MKR holders adjust policy for the DAI stablecoin while governance polls establish a soft consensus and measure community sentiment.

MKR token has achieved an impressive gain in the first days of May 2021, and it has reached a record high above $6400 on May 03.

MKR is currently down more than 65% from its peak; still, the Maker Protocol is a very promising project, and the price of MKR could advance again at levels that we saw in May 2021.

Bears in control of MKR

MKR has weakened from its recent high above $3600, registered in November 2021, and according to technical analysis, this crypto remains in a bear market.

Data source: tradingview.com

The strong support level for MKR stands at $1500, and if the price falls below it, the next price target could be at $1000.

On the other side, if the price jumps above $2500, it could reach very quickly a resistance level that stands at $3000.

Summary

The Maker Protocol is an open-source project that was built on the Ethereum blockchain and the first decentralized finance (DeFi) application that has achieved significant adoption. According to technical analysis, MKR remains in a bear market, but if the price jumps above $2500, it could reach very quickly a resistance level that stands at $3000.

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