- After a comfortable bull rally, the price of MKR is down more than 6% in the past 24 hours.
- While sentiment remained positive, Maker market indicators were bearish.
Maker [MKR] has witnessed a significant increase in value over the past seven days. However, the blowout didn’t last long as the 24-hour price chart turned red.
Read Creators [MKR] Price prediction 2023-24
Increasing sales pressure on Maker
Lookonchain’s tweet dated July 21 revealed that a wallet called a16z deposited MKR to Coinbase. Sales sentiment was also proven by CrypotoQuant’s facts, as MKR’s foreign exchange reserve increased at the time of writing.
In addition, net deposits on exchanges were also higher than in the past seven days. The increase in selling pressure could have played a big part in making the token price bearish.
1/ The price of $ MKR skyrocketed by ~20% today.
We noticed that a16z is dumping $ MKR Unpleasant #Coinbase to sell recently.
And CMS Holdings also reduced its recently accumulated holdings $ MKR 2 hours ago. pic.twitter.com/6AvjWf9NYh
— Lookonchain (@lookonchain) July 21, 2023
From CoinMarketCap, Maker’s price is down more than 6% in the past day. At the time of writing, it was trading at $1,088.57 with a market cap of over $1 billion.
Surprisingly, despite MKR’s massive price increase last week, the supply of top addresses registered a decline. Nevertheless, the total number of holders has increased slightly.
Source: Sentiment
Thanks to the price increase, the sentiment around MKR also turned positive, as evidenced by the rise in weighted sentiment. His social dominance also spiked a few times last week, reflecting his popularity.
Another positive metric was the MVRV ratio, which has risen sharply over the past seven days.
Source: Sentiment
Bears are taking over the market
Not only did CryptoQuant’s data show that MKR was under selling pressure, but it also indicated that Maker’s Relative Strength Index (RSI) was in an overbought zone. This is a bearish signal, increasing the likelihood of a sustained price drop.
Realistic or not, here it is MKR’s market cap in terms of BTC
A look at the daily chart also gave a similar bearish idea. MKR’s Chaikin Money Flow (CMF) registered a downturn. The Bollinger Bands revealed that after a bull meeting, MKR‘s price entered a slightly less volatile zone.
Nevertheless, the 20-day exponential moving average (EMA) was still above the 55-day EMA, which was bullish. Another bullish indicator was the Money Flow Index (MFI), which was hovering above the neutral boundary at the time of writing.
Source: TradingView