- The 9th largest MKR holder bought another $12 million worth of the token.
- MKR’s market structure was bullish but profit-taking may soon begin.
- MKR was overbought, and the price may retrace to $1,100 if demand wanes.
This year, Maker (MKR) has been one of the best-performing altcoins. Even at that, its performance in the last 365 days has been much more than that of Bitcoin (BTC). According to CoinMarketCap, MRK’s 365-day performance was a 75.45% increase at press time.
However, the token may not have been able to outperform Bitcoin if not for the increasing belief whales have in it. At different intervals, there have been records of whales accumulating MKR. Interestingly, it seems the period of whale accumulation has not stopped.
Whales are the Rainmakers
According to on-chain data provider, Spot On Chain, a whale accumulated $12.1 million worth of MKR on September 14. The same whale, who is now the 9th highest holder of MKR, has a balance of 16.205 MKR at the time of writing.
Oftentimes, whale accumulation is characterized by a price increase instantly or days or weeks later. In fact, the retail cohort that tracks whales’ wallets considers the move as a “buy the dip” opportunity. But for MKR, its price increased by 5.01% in the last 24 hours while trading at $1,215.
Playground for Bulls
Furthermore, the MKR/USD 4-hour chart showed that the token’s market structure was largely bullish. At the time of writing, there was almost no sign of bears as MKR’s trajectory went upwards.
Although the token faced rejection at $1,177, the drawdown to $1,159 acted as support and pushed the price above $1,200. Despite the bullish control, the current price may not be a good level to long MKR.
This is because of the Relative Strength Index (RSI) stance. At press time, the RSI was 71.37. The hike is a confirmation of the presence of bulls. However, it is also an indication that MKR is overbought.
Whenever the RSI rises above 70, the price of the asset retraces, So, it is possible for MKR to decline. Also, profit-taking may occur soon, and MKR could plunge to $1,100. However, it is unlikely for the token to fall below the $1,000 threshold.
For the Moving Average Convergence Divergence (MACD), the 4-hour chart showed that it was 6.21. The value of the MACD reinforced the RSI’s bias of solid buying pressure as the blue dynamic line was over the orange.
As of this writing, MKR may continue to exchange hands above $1,200. However, it is highly unlikely that the token will drive toward $1,300 before a significant retracement.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.