In light of the recent pump of Maker (MKR), the governance token of the Maker Decentralized Autonomous Organization (DAO), many enthusiasts celebrate the surge. This follows the introduction of a token buy-back scheme by the Maker protocol on Wednesday, as MKR was trading around $1140 and touched $1250 per token in the day – a new high since June 2022. The scheme aims to repurchase approximately $7 million worth of MKR over the coming month. Specific triggers for buybacks occur when the DAI reserves surpass $50 million.
While this bullish development has sparked enthusiasm, it’s important to remember that trading carries some uncertainties. The ambition is to increase buy pressure in the market and enhance the scarcity of the MKR token. Speculators thus anticipate these upcoming buybacks with eagerness, looking ahead to a further boost.
However, on the darker side of the moon, Maker’s 14-Day Relative Strength Index (RSI) indicates that conditions might be overbought, suggesting market caution. Also, MKR has failed to sustain above the previous high set in August, indicating a short-term breather.
Yet, even should any pullbacks occur, they might not last long as support near the $1077 area could invite buying forces. Simultaneously, the Maker price predictions are largely optimistic, considering the cryptocurrency’s healthy chart setup, hinting a possible continuation of the rally if August’s high can be breached.
While MKR promises strong prospects, diversification remains a proven approach to portfolio management. Blue-chip cryptos like Bitcoin and Ethereum are considered reliable assets. Alternatively, if you have an appetite for higher risk and short-term gains, meme coins may be worth exploring.
Given the current hype around meme coins, the newly launched South Park-themed Burn Kenny Coin could be a potential winner. With a presale of a staggering $400,000 worth of $KENNY tokens since its Thursday launch, the merry community of high-risk meme coin enthusiasts may be eyeing a potential explosion when it joins the decentralized exchanges, possibly by early next week.
Undoubtedly, the crypto market is a dynamo of high risk and potential high reward. Know that moving with caution is as critical as predicting big returns. With the right timing, balance, and a sprinkling of bravery, the current situation may be a unique chance for the savvy crypto enthusiast. Always, remember, the investment road could be bumpy, and no outcome is guaranteed.
Source: Cryptonews
