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Maker Whale Offloads 5420 MKR Worth $11.4 Million, Impact on MKR Prices Explored
A recent transaction has sent shockwaves through the crypto market as a Maker whale offloaded 5,420 tokens worth approximately $11.4 million, generating a profit of $4.93 million in the process. This massive sale has sparked significant concerns regarding its impact on the future direction of MKR prices.
Before this dip, the altcoin had been experiencing an impressive rally, with a gain of 8.07% over the past week. However, since hitting a local high of $2,262 just five days ago, Maker has struggled to maintain upward momentum. The altcoin’s price has now retreated to $2,039, marking a decline of 0.26% in the last 24 hours.
This sudden and aggressive whale action is likely to weigh heavily on the market, as it often signals a lack of conviction among holders and growing bearish sentiment. In this article, we’ll delve into the implications of this significant transaction on the future direction of MKR prices.
The massive sale made by the Maker whale has led to an increase in supply and a sharp decline in demand. This imbalance is likely to drive the altcoin’s price down further, with analysts predicting a potential drop to $1952 if sellers continue to dominate.
On the other hand, for a trend reversal to occur, buyers would need to step into the market and absorb the rising selling pressure. In this scenario, MKR could potentially reclaim $2165 and maintain its upward momentum.
It is essential to note that the whale’s decision to exit the market has been reflected in the derivatives market as well. Derivatives Volume dipped 21.96% to $264 million at press time, indicating a decline in participation in the futures market. Additionally, the Long Short Ratio of the altcoin has dropped below 1 to 0.82, suggesting that investors are actively taking short positions.
Historically, such a sharp bearish shift has led to increased volatility, and it is imperative for traders to remain cautious and vigilant.
Source: eng.ambcrypto.com
