As a seasoned researcher with extensive experience in the crypto market, I’ve seen my fair share of price fluctuations and whale activities. The recent dip in Maker (MKR) price following the large deposit from related wallets to Binance is not an unfamiliar sight. However, it’s essential to delve deeper into the underlying fundamentals and technical indicators before forming a definitive opinion.
The cost of Maker encountered obstacles as a major cryptocurrency wallet, connected to the company, kept selling off its MKR tokens. This wallet is one of the biggest players in the crypto lending market, managing over $9 billion in total value. Consequently, the value of MKR decreased by 3% after it was unable to surpass the $3,000 resistance mark.
Maker Price Analysis: Bulls Remains Strong In Face of Potential Sell-Off
The current price of Maker is moving higher than its 50-day and 200-day simple moving averages, indicating that the upward trend remains strong. The 50-day average, represented by the green line, offers support around $2,818, while the 200-day average, signified by the black line, provides a stronger foundation around $2,433.
There is a significant resistance level between $3,000 and $3,160 that has prevented MKR from rising since its price dropped below this range on April 18. Interestingly, a large MKR seller started unloading their tokens on April 21 as reported by Lookonchain.
The #Maker-related wallets have deposited 5,750 $MKR($16.76M) to #Binance in the past 3 days.
They have been selling $MKR since April 24, and they sold $MKR at high prices most of the time.
They have deposited 18,900 $MKR($53.83M) to #Binance at $2,848 since April 24 and still…
— Lookonchain (@lookonchain) July 18, 2024
In the previous three months, the resistance level of MKR was put to the test on three separate occasions. The most recent occurrence took place on July 17, where the price failed to break through this barrier.
The MACD indicator, a popular technical tool among traders, indicates that Maker DAO’s bullish signals are still strong. At present, this indicator sits above the zero line as well as the signal line, though it may be showing signs of a potential shift.
As an analyst, I’ve observed that the Relative Strength Index (RSI), which indicates trend momentum, barely touched the overbought (OB) level on July 16th before pulling back to 59.43. Currently, the RSI moving average (MA) sits at 54.87 and could potentially act as a buffer for it as it moves towards the midpoint.
On July 16, the Chaikin Money Flow indicator reached a record peak of 0.38, indicating intense buying activity for the asset. Presently, it stands at 0.34 and is trending upwards, suggesting that the Maker price might resume its upward trajectory following this brief correction.
Maker Whales Take Over $16 million in Profits in July
As an analyst, I’ve noticed that Maker Whales realized substantial profits exceeding $16 million during the month of July, according to data from Santiment. Simultaneously, Maker’s price continued its upward trend, registering a weekly growth of 17.2%.
An on-chain analysis company called Lookonchain noticed that large amounts of MKR were being transferred by whales to cryptocurrency exchanges. However, even with these significant deposits, the quantity of MKR held on exchanges has decreased to approximately 114,750 units as of July 16, according to Santiment.
Despite investors cashing in their gains, MKR‘s value persists above the crucial support mark of $2,650. This level aligns with the 50-day Simple Moving Average (SMA). If this support holds firm, MKR might regain momentum and challenge its previous record high.
Bottom Line
Following a deposit of approximately $16 million in Maker (MKR) tokens from related wallets to Binance, the price of MKR dipped by 3.8%. This price drop is indicative of market apprehension, compounded by a historically significant resistance level around $3,000. Interpreting this, short-term sellers may see an opportunity in MKR based on these market conditions.
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2024-07-19 09:14