- Maker’s massive trading volume increased by over 1,400% in just two days.
- Despite the increase in whale activity, technical and on-chain indicators showed mixed signals for MKR.
Maker (MKR), At press time, the price was valued at $1,513 after rising less than 2% in the past 24 hours. It’s worth noting here that the token’s performance mirrored that of the broader cryptocurrency market, with gains of 24% over the month.
However, despite these gains, Maker has remained stuck in the $1,419 – $1,550 range over the past two weeks. But increased whale activity could help push these levels beyond that level.
In fact, data from IntoTheBlock shows that large MKR transactions exceeding $100,000 increased by 1,400% from 3,840 to 60,730 in just two days.
(Source: IntoTheBlock)
51% of the total MKR supply is held by whales. Therefore, as trading activity in this group increases, MKR may move above or below the consolidation range depending on whether traders are buying or selling.
Key levels to note
For Maker to confirm a bullish breakout of the consolidation range shown on the 4-hour chart, a break above the resistance at $1,550 coupled with high buying volume would be needed.
Short volume histogram bars highlighted the lack of buyer interest to push the price above this resistance line. Moreover, the balance volume indicator appears to be flattening, indicating that buying and selling pressure may be balanced.
Traders should note sell-side liquidity at $1,678. Makers may rise to clear this liquidity, and buyer intervention during such a rally could lead to a sustained rally. Conversely, if such a move fails to attract buyer interest, MKR may return to a sideways range or a lower trend.
(Source: Trading View)
At the time of writing, the stochastic relative strength index (RSI) is 24, indicating that MKR is oversold. This may lead to an upward correction in the short term.
At the same time, traders should watch out for the $1,419 support level. A fall below this support could turn the consolidation bearish and MKR enter a downtrend.
As the NVT rate decreases:
Maker’s Network Value to Transaction (NVT) ratio has decreased from 121.47 to 13.17 over the past two days, indicating a surge in network transactions.
(Source: IntoTheBlock)
Whenever the NVT rate drops, this means the token may be undervalued. However, a look at the Market Value to Realized Value (MVRV) ratio, which has risen from 0.84 to 0.87 over the aforementioned period, shows that this may not be the case.
This difference may indicate that higher trading is due to the whales’ profit-seeking activities. This can promote a downward trajectory in the chart.
Derivatives markets represent uncertainty.
In the derivatives market, traders were uncertain about Maker. This comes after open interest fell from $129 million to $86 million in just two weeks.
(Source: Coinglass)
A falling open interest indicates that traders are closing positions on the token due to uncertainty about its future price performance.
This decline in speculative activity may be one of the key factors causing Maker to get stuck in a consolidation phase.