User Engagement Drops: Can Maker Price Crash Below $1400 Level?

• The 24-hour and 7-day active addresses have dropped to a three-month low.
• Along with a 10% drop a week, the Maker price was listed among the top five losers of the week.

While the broader market was headed for a recovery, the Maker price seemed to be digging the ground more. The crypto lost 10% a week. The MKR price was on a 5-day losing streak and following a strong bearish path.

At the time of writing, MKR was exchanging hands close to $1444, losing over 3.5% a day. Along with this fall, the MKR crypto has erased all the gains of 2024 and was headed to erase more.

The long-term and short-term perspectives were weak for Maker. If the selling pressure resumes, it will be accompanied by a potential crash below the $1400 level. Recent on-chain data suggested the short-term outlook may remain in the favor of sellers.

Investors Concern Over Decreasing User Engagement

The Maker Price might emerge as one of the top underperforming cryptocurrencies this month. This could happen as strong selling pressure drags MKR below its annual lows. The price-performance declined 25% a month and over 42% in a quarter.

Per the Santiment, an on-chain analytics provider, the Maker crypto’s active addresses have dropped to three-month lows. This indicated a fading participation of the investors. The active address refers to the number of unique users participating in a transaction within a given timeframe.

As per the data, the 24-hour and 7-day active addresses have decreased. This indicated a decreasing user engagement. The open interest curve was declining, indicating the derivatives traders were opting to stay out of the market.

Following the development, the Maker price, which was at $1500 yesterday, has now fallen to $1440. This price drop affected the market value to realized value (MVRV) ratio. It is an on-chain metric used to calculate the unrealized profits or losses.

Within a day, the MVRV ratio has dropped from -12.1% to -15.8%. The decreasing MVRV ratio suggested the widening losses of the traders and investors.

Despite the selling pressure, the transaction volume has increased by 46.6% a day to $51.2 Million. Also, the volume-to-market cap ratio was 4.09%, suggesting low volatility in the crypto.

Maker Price Forecast: Barish Pressure Mounts

From a price action point of view, MKR crypto has been forming a lower-high pattern over the daily chart. This indicated a prevailing bearish trend. The bulls seem to be struggling for gains in the recent sessions.

 

Currently, the Maker price has been anticipated to resume melting towards the demand. On the lower side, the $1400 may act as strong psychological support from where a bounce is likely. On the higher side, the 20-day EMA may be a substantial hurdle for the bulls to surpass.

For a trend reversal, the bulls need to accumulate prices near the demand, followed by a strong breakout. However, it required enough buying volumes to counter and exceed the selling ones.

The MACD and signal line were placed below the zero line, indicating a bearish pressure. Also, a diverging bearish crossover was observed between both lines, suggesting a worse scenario ahead.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.