Maker Protocol’s native token Maker has posted substantial gains despite the recent market downturn. After news of FTX’s liquidity crisis rocked the crypto market, many coins have struggled to post daily gains to no avail. However, MakerDAO’s governance token experienced an impressive surge today. Notably, MKR is trading at $873 at press time, up by over 26% on the day.
Despite the huge jump in the day, Maker is still unable to recover its weekly losses. However, if its bullish trend continues, it may fully recover in a short period of time.
MKR Increases as Bullish Momentum Kicks In
After a steep decline and selloff in the last day, the bulls have been able to reverse the negative trend of Maker (MKR). During this recovery, the price of MKR rose by $177.40 or 13.64 percent to $840. main catalyst for price hike There is an increase in 1-day trading activity and market cap. Notably, the maker saw a 27.26% increase in its market capitalization and a 15.37% increase in trading volume.
Maker’s benefits were most felt in the Maker Protocol’s DeFi sector. According to a Token Terminal intern on Twitter, DeFi sector lost About 20% of its total value is closed in the last 24 hours. This is surprising and expected because of the controversy surrounding FTX. However, Maker registered an increase in its TVL despite the slowdown. Maker saw TVL grow by 28% in the same period.
This increase is a result of the recent surge in lending activities on the platform. According to the source, the Token Terminal intern explained that the top-three lending protocols, including Maker, $27B . facility of Worth the trading volume. The account noted that the collapse of FTX resulted from the rise of traders fleeing centralized exchanges.
What do the charts say about the movement of the MKR
The intersection of the upper and lower Bollinger Bands is located at 780 and 615 respectively. A widening of the bands indicates an increase in trading activity, which could lead to an increase in price.
The bulls are in control as the market broke above the upper limit, and this uptrend could continue for some time. The RSI is currently at 57.45, which has been fairly stable for the past few hours. As a result, the MKR market shows signs of a balance between buyers and sellers, indicating that the positive trend will continue.
MACD line is still negative at -8. However, it has crossed the signal line and is moving upwards in the positive zone. The histogram is trending upwards supporting the current bullish pattern. As soon as the MACD line rises above the EMA line, we can be sure that the MKR market will continue to rise.
The moving averages for the 5 and 20 days are 749 and 698 respectively. This uptrend is further supported by a rise in market prices above both the moving averages. The Coppock curve, which has just climbed from negative territory to a value of 8, also means continued growth in the Maker market. Overall, the market is expected to remain positive, with key technical signals pointing to further gains soon.
Featured image from Pixabay and chart from TradingView.com