Maker Price Prediction as MKR Pumps 13% on Token Buyback Scheme – Can it Break This Key Resistance?

cryptonews.com:

Maker (MKR), the governance token of the Maker Decentralized Autonomous Organisation (DAO) and of the decentralized finance Maker Protocol behind the issuance of the DAI USD-pegged stablecoin, has pumped around 13% on Friday.

MKR/USD was last trading around $1140 per token, but went as high as $1250 earlier in the session to hit a fresh high since June 2022.

With the broader cryptocurrency market subdued on Friday, MKR’s bullish impulse came from the introduction of a token buy-back scheme by the Maker protocol.

The buy-back scheme, which was introduced on Wednesday, will see the Maker protocol repurchase around $7 million worth of MKR over the coming month.

The token buybacks are part of Maker’s new Smart Burn Engine scheme, which uses excess DAI stablecoins sat in Maker protocol’s reserves to buy MKR tokens from a Uniswap pool.

Buybacks are periodically triggered when DAI reserves exceed $50 million.

MKR surged on Friday in anticipation that the coming buybacks would increase buy pressure in the market, whilst also increasing the scarcity of the MKR token.

Maker (MKR) price predictions remain mostly bullish with the cryptocurrency’s chart set-up looking very healthy.

Since its strong rebound from a former downward trendline and since finding support on multi-occasions at its 21-Day Moving Average (DMA) earlier this month, MKR has been flying.

And if it can break to the north of August 2022 highs at $1227, this rally should continue.

For now, the bulls are taking a breather, with MKR having failed to hold above the August 2022 highs and with the 14-Day Relative Strength Index (RSI) flashing that conditions are overbought.

But any pullbacks to support in the $1077 area could be jumped on by bulls.

While the outlook for Maker (MKR)