Maker (MKR) +51.5% in 24 Hours Amid Sharp Volatility

On AUG 29 2025, MKR rose by 51.5% within 24 hours to reach $1596.9, MKR rose by 411.88% within 7 days, dropped by 2198.33% within 1 month, and rose by 335.12% within 1 year.

MKR experienced a significant 24-hour price increase of 51.5%, driven by renewed interest in decentralized finance (DeFi) protocols and a broader market shift toward risk-on assets. The rally followed key developments in the MakerDAO ecosystem, including protocol upgrades and governance changes aimed at improving capital efficiency and expanding the platform’s use cases. While the surge was sharp, it occurred against a backdrop of a one-month drop of 2198.33%, underscoring the token’s extreme price volatility.

Technical indicators suggest a continuation of short-term momentum following the recent upswing. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both showed positive divergences, indicating potential bullish continuation in the near term. Traders monitoring the 14-day RSI noted a reading of 62, signaling that the token is not yet overbought, while the 12/26 MACD histogram showed a growing positive trend. These signals suggest that the current upward trend could persist, at least in the short term.

MKR’s performance over the past year has been remarkable, with a cumulative gain of 335.12%, despite the recent one-month correction. Analysts have attributed the long-term strength to the token’s role as a governance and collateral asset in the MakerDAO system, which continues to attract institutional and retail liquidity. However, the sharp price drop over a 30-day period highlights the sensitivity of MKR to broader market corrections and regulatory uncertainties.

Backtest Hypothesis

A potential backtesting strategy has been proposed to evaluate the effectiveness of trend-following approaches in trading MKR. The hypothesis assumes a long position is entered when the 50-period and 200-period Simple Moving Averages (SMA) cross above one another, with an exit signal triggered when the 50-period SMA falls below the 200-period SMA. Stop-loss and take-profit levels would be dynamically adjusted based on the ATR (Average True Range) metric to manage risk.

This strategy aims to capture bullish momentum in the context of MKR’s historical volatility. Given the token’s tendency to experience sharp price swings, the use of moving average crossovers can help filter out noise and align with broader directional trends. The hypothesis does not rely on external signals or sentiment-based triggers, making it purely technical in nature and suitable for backtesting against historical price data.