Uncertain market conditions leave MKR holders spooked despite Maker price charting growth

Maker price left a mark on the investors after charting respectable growth last month. Since then, the altcoin has been observing some decline, which ended over the past 24 hours. However, despite the excellent performance, the project seems to lose users' interest, making it difficult to attract new investors.

Maker price rises, but new investors do not

Maker price between mid-June and throughout July posted a 115% increase, bringing MKR to trade above $1,300. Some corrections since then have brought the altcoin down to the current market price of $1,245. This correction was necessary and forecasted since the market was overheated following the rally and needed to cool down.

This is evident in the Relative Strength Index (RSI), which, despite the decline, is still in the bullish zone. 

MKR/USD 1-day chart

However, even though the drawdown was not significant, it did manage to spark concern and fear in the hearts of investors to the point where the project has seemingly lost the traction it gained. Network growth, which measures the rate at which new addresses are formed on the chain, has dropped to a two-month low, suggesting Maker is losing the interest of new users.

Maker network growth

This will lead to a slow recovery of not just the Maker price but also the network strength, determined by the number of users and investors. The total addresses holding some balance of MKR fell by more than 3k towards the end of June. Their recovery since then has been prolonged, rising by just 1k, leaving a gap of 2k.

Maker total addresses with a balance

However, the Maker price recovering quickly might induce a bullish reaction in the investors, consequently attracting new investors to the project. As long as MKR stays above the $1,107 support line, the probability of a drastic drawdown is very low. Maintaining a presence above $1,200 would keep the altcoin open to probable rallies, inducing a bullish momentum.

---

---