The Maker and Aave prices have jumped in the past 24 hours as interest in the DeFi ecosystem continued to rise. Maker (MKR) has jumped by 10.5% to $1,681 while Aave has risen by more than 5%. On the other hand, the Compound and Uniswap prices have dropped by less than 1%.
What happened: The DeFi industry is attempting to disrupt the finance industry by using the blockchain technology. There are more than 100 DeFi projects today. Some, lenders like Maker, Aave, and Compound, are creating global lending marketplaces.
Dexes like Uniswap, Sushiswap, and Curve Finance are creating decentralized exchanges while derivatives like Synthentix are creating derivative platforms. There are other DeFi industries like payments and asset managers.
Today, Aave and Maker prices are rising because of the renewed interest in the industry. Data compiled by DefiPulse showed that the total value locked (TVL) in the industry has jumped to more than $30 billion. This is a significant increase since the TVL was below $1 billion in January last year. Maker, the biggest DeFi project in the world saw its TVL rise to more than $5.7 billion. Aave, on the other hand, has risen to more than $4.02 billion.
On the four-hour chart, we see that the Maker price rose to an all-time high of $1,997 early this year. It then pulled-back and dropped to the 61.8% Fibonacci retracement level at $1,057. Since then, the MKR price has been on a steady uptrend, which has seen it form a cup and handle pattern. The overnight high of $1,774 was on the right side of the cup pattern.
Therefore, I suspect that the price will either consolidate or have a slight pullback as it forms the handle part. Ultimately, I suspect that the price will retest the ATH of $1,774, which is 18% above the current price. However, a drop below $1,500 will invalidate this trend.
The four-hour chart shows that the Aave price has been on a steady upward trend. It remains above the 50-day and 25-day moving averages. Notably, it is above the Ichimoku cloud, which is a sign that bulls are in control. Therefore, in my view, the price will remain in a bullish trend so long as it is above the 50-day EMA and the Ichimoku cloud.
