Maker (MKR) Price Faces Resistance and Rejection After Whale Activity, But Bulls Remain Strong Despite Sell-Off
- 王林Original
- 2024-07-20 16:06:04421browse
The MKR token has experienced a notable price decline, dropping 3% after whale wallets associated with the project deposited $16 million worth of MKR
The price of Maker (CRYPTO: MKR) dropped 3.8% on Monday after whale wallets linked to the project moved $16 million of MKR to Binance.
What Happened: Maker faced resistance at $3,000 on Monday, with three attempts to break past this level in recent months. The most recent attempt was on July 17, which contributed to the sell-off in MKR.
On-chain analysis firm Look on chain noted the whale activity, with the large-scale transactions occurring as MKR’s price declined.
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Technical Analysis: Bulls Remaining Strong Despite Sell-Off
Despite the recent sell-off in MKR, technical indicators suggest the bullish trend may not be over, with the price trading above both the 50-day and 200-day simple moving averages (SMAs).
The 50-day SMA provides support at $2,818, while the 200-day SMA offers support at $2,433.
The Moving Average Convergence/Divergence (MACD) indicator remained above the zero line and the signal line, indicating bullish tendencies.
However, there was a slight hint of a potential turning point, with the MACD close to crossing over and heading toward negative territory.
Bullish momentum was also indicated by the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF).
The RSI slid on Monday, decreasing from Monday morning to reach 59.43.
The RSI moving average was at 54.87, which could act as a cushion as the RSI approached the midpoint.
On Monday, the CMF reached an all-time high of 0.38, indicating significant buying pressure.
Although the CMF had decreased slightly to 0.34, it still signaled strong buying interest, suggesting the current price dip might be a temporary retracement rather than a prolonged downtrend.
Profit-Taking, Market Sentiment
According to on-chain analytics platform Santiment, whales appeared to be booking profits from the recent price rallies, with over $16 million in profits realized in July.
Despite these large-scale sales, the overall supply of MKR on exchanges dropped to 114,750 as of July 16.
This reduction in supply could mitigate some of the selling pressure, potentially stabilizing the price in the short term.
The key support level for MKR remained at $2,650, which coincides with the 50-day SMA. This level is critical for maintaining the bullish outlook and preventing further declines.
If MKR can bounce off this support, it may attempt to break through the $3,000 resistance once again, potentially reaching previous all-time highs.
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