- After a comfortable rally last month, MKR bears entered the market.
- While accumulation was high, the rest of the data remained bearish.
Maker DAO [MKR] rallied comfortably last month and posted promising gains. However, the winds changed direction as the token’s price dropped significantly over the past seven days.
Read Maker DAOs [MKR] Price prediction 2023-24
Whales Buy Now Maker
Maker surprised investors last month when the price started to rise. In fact, MKR’s price is up more than 23% in the past 30 days. But things quickly changed when the MKR bears hit the market.
From CoinMarketCap, the price of MKR moved south as the price fell by more than 10% last week. Not only that, but in the last 24 hours… the signThe company’s value plummeted by more than 1.2%.
At the time of writing, MKR was trading at $1,401.03 with a market cap of over $1.3 billion. The bad news was that the price drop was accompanied by an increase in trading volume. As the price of the token fell, whales took the opportunity to increase their accumulation.
According to Lookonchain’s recent tweet, a whale bought a total of 1,750 MKR, worth $2.5 million, at an average price of $1,429 in the last three days.
The whale changed 80% of its position to $MKRand 20% yes $ETH.
Bought a total of 1,750 $MKR ($2.5 million) at an average price of $1,429 over the past 3 days.https://t.co/64KsldjmrQ pic.twitter.com/MuhrYBU9kY
— Lookonchain (@lookonchain) October 7, 2023
A closer look at the market showed that buying sentiment was generally dominant. The token’s Exchange Outflow spiked significantly while MKR’s price fell.
Moreover, the supply on exchanges decreased, while the supply outside exchanges increased. This clearly suggested that investors were stockpiling the token. Moreover, whales also had confidence in MKR, as evidenced by the increase in the supply of top addresses.
Source: Santiment
Will Whales’ Trust in Maker Pay Off?
Although the whales were confident MKR, the statistics continued to support the sellers. For example, MKR’s MVRV ratio fell sharply last week. Network growth also followed a similar trend of decline, meaning fewer new addresses were created to transfer the token.
Additionally, the Binance Funding Rate was green, which meant derivatives buyers were purchasing the token at a lower price.
Source: Santiment
Is your portfolio green? look at the MKR profit calculator
Consequently, most market indicators were also in favor of the sellers. Notably, Maker’s MACD showed a bearish crossover. The Relative Strength Index (RSI) also registered a downward trend and headed towards the neutral limit.
Nevertheless, MKR‘s Chaikin Money Flow (CMF) was bullish as it has been gaining upward momentum in the recent past.
Source: TradingView