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Maker (MKR/USD) price formed a double-top pattern as a vote on capital deployment continued. The MKR token retreated to a low of $855.36, the lowest point since March 3 of this year. It has plunged by about 12.1% from its highest level this year.
Maker to buy more bonds
Maker is the second-biggest player in the Decentralized Finance (DeFi) industry. It is a platform that allows people to borrow funds in a decentralized manner. According to DeFi Llama, it has a total value locked (TVL) of more than $6.86 billion. The only platform that has more funds locked in it is Lido, the liquid staking ecosystem.
Maker uses a different model than other lending and borrowing platforms in that it uses Dai, its own stablecoin. Dai is a decentralized stablecoin with a market cap of more than $5 billion, making it the 17th biggest crypto in the world.
The most important Maker news is that community members are currently voting to authorize the release of more funds to buy US government bonds. Precisely, the platform will buy bonds worth $750 million. This view is based on the fact that the rising interest rates have made bonds one of the most attractive asset classes in the industry.
The 10-year government bond yield has risen to 4% for the first time in months. Similarly, the 2-year yield has jumped to the highest point since 2007. As such, investing in these assets seems like a good way of attracting strong yields for the market. If the proposal is passed, it will push the total allocated assets to more than $1.25 billion.
These allocations show the intersection of the blockchain industry and the centralized ecosystem. It also shows how companies are moving their funds to high-yielding government bonds as the Fed continues tightening.
The other important MakerDAO news is that the developers partnered with BlockTower Credit to fund $250 million in real-world assets.
Maker price prediction
On the 4H chart, we see that the MKR price has formed a double-top pattern at $973.65. In price action analysis, this pattern is usually a bearish sign. Maker has moved slightly below the neckline of this pattern. It has also moved below the 25-period moving average while the Relative Strength Index (RSI) has formed a bearish divergence pattern.
Therefore, Maker will likely have a bearish breakout as sellers target the next key support level at $792, the highest level on February 22 and February 13. This price is about 7.72% below the current level.
The post MakerDAO’s MKR price forms rare pattern amid a debt ceiling rise appeared first on Invezz.
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