Maker Price Slumps 3% as MKR-Related Wallets Deposit $16M to Binance

Maker price faced some resistance as a whale wallet related to the company continued to dump the token. The company ranks among the largest crypto lending protocols, with over $9 billion total value locked. The price of MKR dropped 3% as the asset was rejected from the $3,000 resistance level.

Maker Price Analysis: Bulls Remain Strong In the Face of Potential Sell-Off

MKR price is trending above the 50-day (green) and 200-day (black) simple moving averages (SMA), which is a confirmation that the uptrend is still intact. Below the price action, these two SMAs provide support around $2,818 (50-day) and $2,433 (200-day). 

A strong barrier exists between $3,000 and $3,160 that has suppressed the price of MKR since April 18, when the asset fell below it. Coincidentally, the dumping MKR whale began its sell-off on April 21, per Lookonchain. 

The #Maker-related wallets have deposited 5,750 $MKR($16.76M) to #Binance in the past 3 days.

They have been selling $MKR since April 24, and they sold $MKR at high prices most of the time.

They have deposited 18,900 $MKR($53.83M) to #Binance at $2,848 since April 24 and still… pic.twitter.com/0JwuGA4aXL

— Lookonchain (@lookonchain) July 18, 2024

MKR has tested the resistance three times in the past three months, with the third test occurring on July 17, when the price was rejected.

Technical indicators reveal Maker DAO’s bullish tendencies are not over. The moving average convergence/divergence (MACD) indicator is above the zero line and also above the signal line – although there is some slight hint of turning. 

The relative strength index (RSI) which shows the trend momentum, barely grazed the overbought (OB) zone on July 16, before retracing to 59.43. The RSI moving average (MA) is at 54.87 and may provide a cushion for it as it approaches the midpoint.

The Chaikin money flow made an all-time high of 0.38 on July 16, signaling extreme buying pressure for the asset. The indicator is currently at 0.34 and headed upwards, signaling Maker price may continue in an uptrend after this short retrace.

Maker Whales Take Over $16 Million in Profits in July

Maker whales made bank in July, booking profits to the tune of over $16 million, Santiment shows. Nevertheless, the price of Maker continued soaring, booking 17.2% gains in the past week.

Lookonchain, an on-chain analysis firm, spotted the whales moving large sums of MKR to crypto exchanges. Nevertheless, despite the huge deposits, MKR supply on exchanges has dropped to 114,750 as of July 16, per Santiment.

Even as holders continue to take profit, MKR price remains above the key support level of $2,650, which coincides with the 50-day SMA. MKR could bounce off this support and make a break for the previous all-time high. 

Bottom Line

Maker price experienced a 3.8% price decline following the deposit of $16 million worth of MKR from related wallets to Binance. The price slump reflects market unease coupled with a historical resistance of around $3,000, which can be interpreted as a sell signal for MKR in the short term.