DeFi Token MFT Hits Quarterly High Following 84% Rally; What’s Next?
MFT surged 84 percent in just three days to hit its topmost quarterly level.
The native token of Mainframe, a decentralized finance (DeFi) project that offers fixed-rate lending and borrowing services, topped at 0.3460 as of 1218 UTC Monday. The gains appeared amid a market-wide craze for DeFi projects that saw many of MFT’s peers recording double-digit percentage rallies in the last 30 days.
The MFT/USD exchange rate itself surged by a whopping 270 percent on a 30-day adjusted timeframe. The pair’s rally made MFT one of the best performing tokens in the running quarter, falling only behind Akropolis’ AKRO, which surged 569 percent in the same period.
What’s Pumping MFT Price
The MFT price rally began on March 13, a day after fears of the COVID pandemic crashed the global market. It practically recovered after bottoming like the rest of the cryptocurrency market. Meanwhile, MFT’s recovery also tailed rebounds in other coins, showing that it was merely tailing the trend.
Low liquidity and volume allowed MFT to rise higher than the top market coins, such as Bitcoin and Ethereum. At the second quarter’s close, the Mainframe token was up 163 percent – as measured from its March 12 nadir.
The momentum started picking up in the third quarter. Entering mid-July, the MFT/USD exchange rate surged 245 percent in just five days of trading. The pair later corrected by 45 percent, only to continue its rally afterward. By August 10, it was trading up to 324 percent higher on a quarter-to-date timeframe.
Mainframe token up 270 percent YTD. Source: TradingView.com
Lots of fundamentals played a crucial role in pumping the MFT price higher.
As of mid-June, the Mainframe team had launched “liquidity mining” to generate monetary backing for its native token. That was a part of the so-called “yield farming rush” that saw the token of almost every DeFi project with a staking-based incentive model logging surplus returns.
According to Santiment, a crypto-focused sentimental analysis platform noted that more traders are buying MFT at its local lows. Meanwhile, its daily active addresses (DAA) grew higher in July that further pointed to an increase in activity across the Mainframe network.
“The DAA continues to decline after the huge peak of 331 DAA on July 18th (now at just 78),” added Santiment. “If this metric rises again, combined with recent buyers this far underwater, it could be promising for Mainframe longs.”
Technical Outlook
With its latest rally, MFT/USD came closer to testing the $0.00386-level of the Fibonacci retracement graph as shown below.
MFT price targets per the Fibonacci Retracement levels. Source: TradingView.com
The pair is currently correcting lower, which points to a retest towards $0.0033. Extended selling action is likely after a parabolic rally. Therefore, the price could fall further below the said level – towards $0.0025. It is likely that bears treat it as their ideal short target on a correction.
Conversely, a breakout above $0.0038 put MFT/USD in a never-seen-before territory. It is difficult to predict the pair’s next pullback level.
OhNoCrypto
via https://www.ohnocrypto.com
Yashu Gola, Khareem Sudlow