While the crypto market quickly turned bearish after yesterday’s barely bullish outlook, top coins have found new support zones. Interestingly, MakerDao’s MKR is strong during this recession as it posted massive gains. Today the MKR surged with huge gains and added nearly 20% to its value. Despite this impressive rally, the price of MKR has recently taken a plunge to higher levels as holders posted their gains.
This is why Maker Token skyrocketed today
This abrupt rise has caught the attention of two major entities in the crypto market: venture capital firm Andreessen Horowitz (a16z) and digital asset fund CMS Holdings. This observation comes from Lookonchain, a leading analyst of whale transactions and activities.
a16z has been spotted transferring massive amounts of MKR to crypto exchange Coinbase. The company has reportedly moved a total of 12,864 MKR, which is worth about $12.6 million. This activity has led to speculation that a16z could be preparing to redeem some of its MKR positions.
In addition, today a16z transferred another MKR 6,900 (worth approximately $8 million) to a new address. This move has fueled the fire of speculation that the company could devise a strategy to put this money into exchanges for a possible sell-off. Currently, a16z’s remaining MKR holdings are MKR 12,396, estimated to be worth approximately $14.4 million.
CMS Holdings is now also active in the MKR market. The company deposited 525 MKR (approximately $614K) into Binance. In addition, CMS Holdings took in MKR 1,325 (worth $1.54 million) from Binance and Bitget at an average price of $793. The company’s current MKR holdings amount to MKR 800, estimated to be worth about $936,000.
Also Read: Bitcoin Surges To $30,000 From Critical Support! Is it time to go long on the BTC price?
Will the MKR price rise to $1,600?
The significant change in MKR holdings by major players such as a16z and CMS Holdings is likely to have led to the token’s price surge. Their trading activity has brought Maker into the spotlight, attracted new buyers and pushed the price further.
However, after peaking near $1,300, the price entered a period of consolidation due to profit taking. Despite a bearish attempt to push the token below $1,170, bulls maintained momentum and pushed it above the 23.6% Fibonacci channel. At the time of writing, MKR is trading at USD 1,160, up 19.1% in the last 24 hours.
If the bulls manage to send the price above $1,300, it could bolster their confidence and push the price towards the next resistance level of $1,379. A breakout above this level could be a sign of a new uptrend towards USD 1,645.
On the other hand, sellers are poised to take control near the $1,300 mark. A bearish reversal at this point could push the asset below multiple Fibonacci channels and lead to a consolidation around $1,050.