What’s Behind Maker’s Showstopping 48-Hour, Almost 40% Rally?

Tony "The Bull" Severino

5 years ago

3 mins read

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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.

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.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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