Between mid-June and late July, Maker (MKR) demonstrated remarkable strength with a 115% appreciation, peaking above $1,300 before undergoing expected profit-taking that brought it down to $1,245. This consolidation phase represents healthy market behavior following such an aggressive uptrend.
Technical indicators suggest the correction may not be complete. The Relative Strength Index (RSI), while retreating from overbought territory, continues hovering in bullish ranges, indicating potential for either further sideways action or renewed upside momentum.
However, underlying network metrics reveal concerning trends. The rate of new address creation - a crucial indicator of organic adoption - has plunged to multi-month lows according to Santiment data. This declining network growth coincides with reduced accumulation among smaller holders.
Address analytics from IntoTheBlock show the total count of MKR wallets dropped sharply by 3,000 in late June. While partial recovery has occurred, the net loss of 2,000 addresses suggests weaker retail participation compared to the rally's peak.
The $1,107 level emerges as critical support, representing both a psychological round number and the 38.2% Fibonacci retracement of the recent upswing. Sustained trading above $1,200 could reignite bullish momentum, but requires confirmation through improved network fundamentals.
Market participants should monitor whether MakerDAO's upcoming protocol developments can stimulate renewed address growth. Without fresh capital inflows, the current consolidation phase may extend further despite the token's strong fundamental position within the DeFi ecosystem.