Whale Profit-Taking Suppresses MKR Price
According to data, whales have transferred a significant amount of MKR tokens. Between August 28th and September 4th, the number of MKR transfers worth $100,000 or more increased from 14 to 37 transactions. What does this indicate?
Whale transfers are an important indicator for measuring asset price changes and often play a role in either boosting or suppressing prices. When the price drops after a large volume of whale transfers, it suggests that whales are likely moving their holdings to centralized exchanges to secure profits. With the increase in substantial transfer volumes, MKR price retraced its weekend gains.
Another key on-chain indicator is exchange supply. MKR's supply increased from 102,420 tokens to 110,920, reflecting a growth of 8.2%. This indicates that tokens are being moved to centralized exchanges, where traders may sell them, further supporting the credibility of bearish sentiments towards MKR.
Value of MKR transfers worth $100,000 or more (yellow) and $1,000,000 or more (blue), source: Santiment.
The increase in exchange supply and other on-chain indicators such as whale trading activity suggests that MKR is being sold, potentially leading to a decline in MKR price.
MKR Volatility: Vitalik Buterin's MKR Sale and Whale Wallet Activity
Over the weekend, MakerDAO founder Rune Christensen proposed moving from Ethereum to Solana or a local blockchain, causing controversy around Maker. In response to these remarks, Ethereum founder Vitalik Buterin sold nearly $580,000 worth of MKR assets, which could be a contributing factor to bearish sentiment among traders.
More importantly, there has been a recent surge in outflows from exchanges for MKR, which can be explained by the withdrawal activity of a large wallet investor on Binance.
Large wallet investor withdrew MKR from Binance on September 4th.
Short-term Future Price Trend of MKR
Since August 28th, MKR price has risen from $1,000 to a high of $1,200, representing a 20% increase. Currently, the MKR price has retraced to $1,134, erasing 12% of its gains.
MKR daily price chart, source: TradingView.
Next, MKR price may find support around $1,084, close to the level observed on August 28th. Furthermore, the recovery of MKR is yet to be observed due to a series of bearish on-chain indicators.
