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DeFi Tokens Maker, Kyber Network, and Aave Moon Despite Uncertainty in the Market
Demand for DeFi tokens continues to rise, and Maker, Kyber Network, and Aave are a clear example of this. These cryptocurrencies have enjoyed an impressive rally over the past few months, and this trend may continue.
Maker Aims to Regain Critical Support LevelMaker is one of the latest beneficiaries of the “Coinbase Effect.” This is a phenomenon where a token’s price skyrockets after being listed on the American exchange.
Indeed, the Ethereum-based DAO saw its price surge nearly 120% after Coinbase Pro announced that it would be listing it on its retail platform.
On June 11, however, MKR reached an exhaustion point as its price took a 40% nosedive. After hitting a new yearly high of $730, Maker dropped down to $447.
Data from IntoTheBlock suggests that addresses mostly drove recent price action with millions of dollars in MKR, colloquially known as “whales.”
The number of on-chain transactions larger than $100,000 was hovering around four operations per day in late May, but after Coinbase’s announcement, it shot up 3,000%.
A few days later, the number of significant transactions on Maker’s network peaked at 123 transactions per day, which eventually led to the massive correction.
Number of Large Maker Transactions by IntoTheBlockNow, IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that Maker is trying to regain the $542 level as support. An increase in demand that allows the DeFi leader to move past this barrier could increase the odds for a further advance.
Based on this on-chain metric, the next most significant area of resistance sits between $586 and $605. Here, roughly 843 addresses bought more than 56,000 MKR.
In/Out of the Money Around Price by IntoTheBlockDue to the magnitude of the bullish impulse Maker went through, another downswing cannot be taken out of the question. If the bears were to step in, the IOMAP cohorts show that the most critical area of support to watch sits around $500, where approximately 890 addresses bought nearly 62,000 MKR.
This demand zone must hold in the event of a correction for the uptrend to resume. Otherwise, one could expect more losses to come.
Kyber Network Seems Poised for Further GainsKyber Network has enjoyed a substantial rally since the beginning of the year. Since then, this cryptocurrency has gone up by nearly 640% from a low of $0.18 to a high of $1.35.
The exponential buying pressure behind it seems to be fueled by mounting speculation regarding an upcoming protocol upgrade scheduled for later this year. Dubbed Katalyst, the hardfork is set to introduce staking rewards, allowing KNC holders to earn part of the fees collected by the network for helping keep it secure.
Despite the massive gains already posted, multiple technical indexes reveal that Kyber may have more room to advance higher. The TD sequential indicator, for instance, is currently presenting a buy signal in the form of a red nine candlestick on KNC’s 4-hour chart.
The bullish formation forecasts a one to four candlesticks upswing or the beginning of a new upwards countdown. A green two candlestick trading above a preceding green one candle can serve as confirmation for the optimistic outlook.
Additionally, a bull pennant seems to be developing within the same time frame. The 102% upswing that took place between June 8 and 10 created the flagpole. And, the symmetrical triangle that developed since then formed the pennant.
A further increase in buy orders behind Kyber Network that allows it to break out of this pattern might see the token surge 47% towards $1.80.
This target is determined by measuring the height of the flagpole and adding that distance to the breakout point.
Like Kyber Network, the decentralized peer to peer lending protocol Aave has also seen its price skyrocket since the beginning of 2020. Thus far, this altcoin has gone up by more than 630%, and it recently surpassed the $100 million market cap milestone.
We've officially reached the $100M market size milestone!