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Maker Price Risks Drop to $1200 Amid Major Rebranding to SKY

Maker price has been struggling under the weight of declining markets for over six months now. MKR recently broke below the crucial $2,200 mark, setting the stage for its continued downtrend to its current price range of around $1,500. Despite MakerDAO’s plans to rebrand and build a new ecosystem to harness the potential of DeFi, there has been a decline. This comes at a time when Donald Trump is launching his own platform, World Liberty Financial.

Maker Price Drops 44% Despite SKY Rebrand Hype

The MakerDAO rebrand to Sky Ecosystem has been in the works for over ten months. This upgrade was discussed as far back as December 2023. However, it was not until May 2024 that details of the upgrade were released on the MakerDAO official forum.

The rebrand is part of MakerDAO’s endgame overhaul of its entire system and will result in the Maker (MKR) token upgrading to Sky (SKY) and the Dai Stablecoin upgrading to Sky USD (USDS). 

According to the upgrade details, 1 MKR token will be redeemable for 24,000 SKY tokens. The upgrade will happen in four phases: Beta launch, SubDAO launch, Governance AI Tools launch, Governance Participation Incentive launch, and NewChain launch & Final Endgame State.

Despite these ambitious plans, Maker price has continued to shed value over the months. The MKR price has dropped by 1.6% over the last 24 hours and is trading at $1,493. 

MKR Price Technical Analysis

Maker price has been on a clear downward trend since mid-August. A recent sharp decline is also evident, moving from around $2,200 to approximately $1,487.

MKR price has a key support level at $1,260, seen in the bottom horizontal line where prices are close. This has served as a long-term support zone, as visible from the previous price action in the chart, and the price is heading toward this level.

Conversely, the Maker price may find resistance around $2,200, which marks a crucial level from the last price swing. This level served as support before, but after the recent breakdown, it now acts as a strong resistance.

Maker Price Analysis Chart

The sharp drop from the $2,200 level resembles an Elliott 5-wave down structure. If this is the final wave of the decline, a corrective upward move might follow.

If the price of Maker finds support at $1,260 and bounces back, it could result in a substantial 743% move to $2,200. A break above this would invalidate the current bearish thesis, setting the stage for higher price targets above $3,000. 

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