Maker bulls exert significant effort to counter the dampening sentiment in the cryptocurrency market, resulting in a 5% price increase for MKR to $2,850.
Bitcoin and most altcoins plunged into negative territory after Monday’s strong performance, which saw Bitcoin climb to $70,000.
A 3% decline in total market capitalization to $2.5 trillion underscores the growing selling pressure.
Maker Begins LitePSM Upgrade Rollout
Maker Governance has voted to approve the implementation of LitePSM, a high-efficiency upgrade to the PSM.
PSM is a tool to maintain DAI’s peg to the US dollar. It allows users to swap DAI for supported stablecoins like USDC at a 1:1 ratio. This arbitrage mechanism helps stabilize DAI’s price by preventing significant deviations from its target value.
Maker Governance has approved the latest Executive Vote.
The changes described below will be available for execution within the Maker Protocol on July 30th, at 20:29 UTC.
LITE-PSM-USDC-A Phase 1 Actions
The first phase of the migration from… pic.twitter.com/gSGVv1Ma8X
— Maker (@MakerDAO) July 29, 2024
According to Dewiz, a DeFi Engineering Services provider, PSM came to life “during DeFi Summer to tame $ Dai’s rollercoaster.” Critics faulted the system for hogging Dai supply amid massive spikes in gas.
The introduction of LitePSM will see users of the stablecoin Dai slash gas fees, access smoother Dai swaps, and yield more. LitePSM’s main objectives are maintaining the Dai peg the US dollar by minimizing volatility, providing liquidity, and managing the stablecoin’s systemic risk.
Dai is a stablecoin in the MKR ecosystem. It is pegged to the US dollar, allowing investors to access DeFi platforms to facilitate swaps and asset trading. Dai boasts a $5.3 market cap and is the 19th largest cryptocurrency.
MKR Price Targets $3,000 Following Breakout
After MKR price topped out at $3,118 last week, it assumed a downtrend between two slanting trend lines, forming a falling wedge pattern.
With every step taken downwards, volume decreased, suggesting that sellers lost their grip and allowed the bulls to turn things around.
Support at $2,600 allowed fresh liquidity collection, arming MKR price for a strong trend reversal. Traders increased exposure to MKR longs upon breaching the upper trend line, with the stop loss slightly below it.
A 10% increase in price is anticipated, bringing MKR near the $3,000 level. A golden cross pattern formed with the 20-day EMA crossing above the 50-day EMA affirms the ongoing uptrend. The MACD buy signal is another bullish factor when trading MKR this week.
MKR price chart | Tradingview
MKR needs to find support above the previous day’s open of $2,825; otherwise, sliding under it could spook traders, who may move quickly to close positions and shift to short the token.
Such an occurrence may accelerate the correction toward the initial support at $2,700 with the possibility of an extended decline to $2,600.
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