- MakerDAO founder sold 2,235 MRK tokens valued at $4.54 million.
- Bulls’ attempt to flip the $2,079 resistance could be rejected by sellers.
- The RSI formed a positive divergence, indicating a potential to run past $2,147.
According to Spot On Chain, a wallet linked to MakerDAO’s founder Rune Christensen has sold $2,235 MKR tokens in the last two days. Christensen liquidated the tokens at an average price of $2,023, meaning that the total sale was worth $4.54 million.
The post also mentioned that the said wallet still owns 2,430 MKR. It also mentioned that the price of the token has decreased by 3.39% since the first sale.
Typically, when founders sell some of their tokens, it shakes the confidence the community has in the project. However, it is not unusual and the reason for the dump was uncertain as of this writing.
But MKR holders might be concerned by the decision especially as the price action failed to follow the broader market trend. According to CoinMarketCap, Bitcoin (BTC) jumped above $42,000. This led a large part of other cryptocurrencies to follow in the same direction.
However, MKR’s price did not. At press time, the token was trading at $2,019, representing a 2.20% 24-hour decrease.
Bulls and Bears Fight It Out
MKR displayed a positive outlook between January 23 and 25. During that period, the price climbed from $1,887 to $2,147. But that rise in validation was quickly quenched by the profit-taking of participants.
The rejection sent MKR’s price to $1,985. Since that period, the token has been trading within a narrow area of $1,985 and $2,028.
Technical indications shown by the MACD suggested that has increased selling over buying over the last few days. This was because the MACD reading was negative, and the 26 EMA (orange) had flipped the 12 EMA (blue).
Entries May Open Up at $1,925
As it stands, bulls might attempt to push above the key resistance level at $2,079. If successful, MKR could rise above $2,100. However, if the token faces rejection around the same spot, it could head down to the next support level at $1,825.
A look at the RSI showed that it was on course to form a positive divergence. However, this was no guarantee that an MKR pump would be next.
Should bulls come in to negate sellers’ dominance, the RSI could hit 56.70. In this case, MKR’s price might rise above the $2,147 resistance where the 0.236 Fib level was.
However, if the trend goes negative, the next entry could be the 0.786 Fib level. From the 4-hour chart, this level was around $1,925.
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