Maker (MKR) Token Surges 25% as Grayscale Adds New Crypto Fund

Maker's MKR token has surged 25% from its recent low on Aug. 5, buoyed by the announcement of a new Grayscale fund.

Key points:

Maker’s (MKR) recent 25% rally from its Aug. 5 low stalled at a critical resistance level.

Grayscale announced a new single-asset crypto fund that includes MKR, aiming to provide investors with exposure to the Maker ecosystem.

The DeFi Education Fund purchased an Oracle technology patent from True Return Systems and dedicated it to the public, ending a lawsuit against Maker.

While technical analysis on the daily chart suggests a possible breakout or rejection at $2,150, the RSI and MACD indicators show mixed signs.

A broader analysis using wave count and Fibonacci retracement levels reveals a bullish five-wave trend unfolding, targeting a potential high of $5,525.

The price of Maker (MKR) has surged by 25% from a recent low on Aug. 5, buoyed by the announcement of a new Grayscale fund. However, the rally has stalled at a critical resistance level, leaving investors wondering if MKR can break through the $2,150 barrier and continue its upward momentum.

Grayscale adds Maker

On Aug. 14, 2024, Grayscale announced that it will offer its investors a new single-asset crypto fund that contains MKR. Grayscale stated that the fund launch will expose investors to the entire Maker ecosystem.

“Today, we’re excited to announce the launch of the Grayscale Maker Trust (GMRK). GMRK is a single-asset trust that tracks the performance of the Maker Token (MKR). It’s designed to offer investors direct exposure to the Maker ecosystem.”

The Grayscale MKR trust manages $226,904, and its Net Asset Value (NAV) per share is $12.77.

In other positive news, the DeFi Education Fund announced the purchase of a patent related to Oracle technology from True Return Systems. They will dedicate it to the public, ending a lawsuit against Maker and ensuring that similar lawsuits cannot be filed in the future.

“The DeFi Education Fund purchased the patent and dedicated it to the public, domain, and True Return Systems agreed that no further lawsuits over this technology will be permitted. This effectively ends the True Return lawsuit against Maker.”

Can MKR reclaim resistance?

The daily technical analysis chart shows that Maker has fallen sharply since reaching a yearly high of $4,075 in April. At first, the price bounced at the $2,150 support area (white circle) on the daily chart, which stalled the decline for a short time.

However, after creating a lower high (black icon), it plunged quickly and broke down from the area on Aug. 5. The decline led to a low of $1,720 before finally finding support again.

After the breakdown, the bulls stepped in and pushed the MKR price higher, taking it back to the $2,150 area once again. Whether it breaks out or gets rejected is very important for the future Maker trend, as it will determine if this is a retest or a rejection.

Unfortunately, the RSI and MACD do not help confirm which is more likely since both give mixed signs. While the RSI is increasing, it is below 50, indicating bearish momentum.

Similarly, the MACD is close to making a bullish cross but is deep into negative territory, suggesting that the bears still have significant control.

So, to establish whether the trend is bullish or bearish, we need to look at a longer time frame and wave count.

Long-term MKR bullish trend intact

Taking a step back to assess the broader market context, the technical outlook for MKR appears increasingly bullish.

A closer examination of the wave count suggests that a five-wave upward trend is unfolding, with the recent low on August 5 marking the completion of wave four.

“A closer look at the Maker chart reveals a possible five-wave bullish trend (white) unfolding. The recent price bounce occurred precisely at the 0.618 Fibonacci retracement support level (dotted), further strengthening the validity of the support trend line within the descending parallel channel.”

Notably, this bounce occurred precisely at the 0.618 Fibonacci retracement support level (dotted), reinforcing the validity of the support trend line within the descending parallel channel.

In this case, the 1.61 external Fibonacci retracement of wave four will create the target for wave five. The Fibonacci method predicts a high of $5,525, very close to the all-time high price of $6,391.