MakerDAO recovers. The crypto market has been red for the last 48 hours, with Bitcoin falling to the $15,000 zone after breaking through the $18,250 support.
So far, the decline in Bitcoin is one of the most severe it has experienced in the last two years and happened in the wake of the FTX's liquidity issues.
The crypto market capsized when Bitcoin and many altcoins fell by double-digit percentages in less than 24 hours.
Ethereum, for example, came dangerously close to the $1000 zone after almost hitting $1800 only a few weeks ago.
However, while some cryptocurrencies are still in their dips and are under severe threats of going further under their respective support levels, some have started to reverse to the upside and are even making gains.
One of these cryptocurrencies is the native cryptocurrency of the Ethereum-based smart contract platform, Maker [MKR].
Maker has started to recover its losses, even moving to the upside by 12.25% over the last day.
According to data from Coinmarketcap, Maker has normalized under the influence of its bears over the last 24 hours to an increase of 12.25% in the previous 24 hours at the time of writing.
According to CoinMarketCap, the cryptocurrency has fallen by 13% over the last seven days but has managed to clear out most of its losses in a single day this week.
Although the reason for Maker recovering faster than the other cryptocurrencies on the market is unclear, a good guess would be MakerDAO, the governing committee of the Maker protocol's venture into trade-fi last week, and how it managed to double its revenue.
Reportedly, staking rewards on MakerDAO's USD-pegged stablecoin holdings and real-world assets like short-term bond ETFs now provide half of the DAO's revenue.
According to Sebastien Derivaux, the DAO's asset-liability lead, MakerDAO, now expects to generate $20.2 million in annual revenue. However, this figure does not include real-world asset revenue, which takes longer to appear in blockchain data.
"[MakerDAO] is doubling revenue over the last two weeks," Derivaux wrote in a tweet. "This is only the beginning, and I'm starting the discussion to reward DAI holders to supercharge growth."
These strong fundamentals may be one of the driving forces for Maker's price strength despite the odds and the conditions in the general crypto market.
According to DefiLlama, MakerDAO is the largest Defi protocol in the world, with more than 6.5 billion dollars worth of assets on the Maker protocol.
MakerDAO's TVL also represents almost 15% of the 43.83 billion-dollar Total value Locked in Defi protocols worldwide.
Maker broke below the $1150 zone (blue horizontal line) in June this year and has tried severally to break right above it again. The latest price rejection happened in mid-October this year, leading to a decline that coincided with the general market dip this week.
The resulting price dip from the $1150 zone took Maker below its 20, 50, and 100-day moving averages, indicating that the bears seized control from the bulls before they had a chance to react.
So far, this new uptrend on MKR is taking the cryptocurrency's price up for a retest of the moving averages.
Judging by the recent bullish momentum on Maker, a possible retest of the $1150 zone may be on its way. RSI was heading for oversold conditions during the heat of the price dip and has now bounced off the 29.44 level.
It might be interesting to note that Maker has never been heavily oversold, with its lowest RSI level being the 23.4 zone.
Maker hit the 27.89 zone on the RSI before its current reversal and may be headed for a retest of this $1150 resistance level.
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