What’s Behind Maker’s Showstopping 48-Hour, Almost 40% Rally?
Decentralized finance tokens all over the crypto market are soaring. First, it was Compound stealing the limelight with yield farming, then recently, it was Aave (LEND) with a shocking 300% surge. Now it appear’s to be Maker’s turn.
Is this massive rally in Maker really due to DeFi continuing to defy all odds, or is something else at play? And what do technical indicators potentially say about the altcoin asset?
Make Way For Maker’s Nearly 40% Surge in 48 Hours
Over the last 48 hours, the crypto asset known as Maker has been making many investors happy. The nearly 40% rally left a large wick behind that ate away at gains, leaving only 13% returns to show for the impulse.
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The two-day performance is still nothing to sniff at, potentially closing out the day with 10% leftover from the surge.
Maker MKRUSD 38% Two-Day Rally | Source: TradingView
Maker is the latest DeFi token to shine over the last several weeks. The growing crypto craze is showing no signs of slowing down as both projects and investors continue to jump on the bandwagon.
Could Maker simply be the latest token to experience a hype-driven pump as altcoin investors shuffle from coin to coin?
All across markets right now, a “Great Rotation” is going on. Bitcoin profits are rolling into altcoins. Nasdaq composite and tech stock profits are pouring into the S&P 500. And in DeFi, capital is flowing from one project to another looking for the next big thing.
Fund managers warn against taking such risks and sticking to the primary movers in the DeFi market, which is why Maker may suddenly be pumping.
Unlike the shining new stars of DeFi, the major players like Ethereum and Maker have been slow to follow. But the two assets started pumping alongside one another yesterday, and it could be the start of something more.
Maker MKRUSD Average Directional Index Daily | Source: TradingView
The Start of a New Uptrend, Or DeFi Trend Taking Over?
On the MKRUSD trading pair, Maker is showing a strong push into resistance built up over the last two years of price action. At a glance, it looks like the altcoin will have a hard time getting through, but the surge is accompanied by a breakout in volume.
Coinciding with the breakout of trading volume, the Average Directional Index is showing a massive bullish trend forming. It is the largest bullish impulse on the Directional Movement Index over the last two years, and it is only just getting started.
Maker MKRBTC Average Directional Index Daily | Source: TradingView
If the ADX itself can rise over the dotted line and a reading of 20, a strong uptrend will confirm. The ADX is also looking bullish on the MKRBTC trading pair, which shows a lot more room above resistance to climb.
The Average Directional Index is a trend measuring tool, that is suggesting that Maker is about to begin a strong uptrend. It also could be a sign that the DeFi trend is only getting stronger, and any lagging investors need to get on the hype train before its too late.