MKR Whales’ holding hits a six-month high as Maker price crashes by 25%
|- Maker price is currently sliding towards $1,000, trading at $1,012 at the time of writing.
- Whale addresses holding between 1,000 MKR to 10,000 MKR have been accumulating MKR throughout this month.
- Most of the supply sits in the wallet of mid-term holders, leaving room for the vulnerability of sudden selling at any time.
Maker price was one of the best-performing assets throughout June and July. The rally noted in that duration made MKR a must-have token, and it seems like the whales did not waste the opportunity to make it happen. However, if the price declines further, this altcoin also faces the threat of loss offsetting via selling.
Maker price inches closer to losing its gains
Maker price at the time of writing could be seen changing hands at $1,012 after noting a near 8% decline in the past 24 hours. This dip added to the series of red candlesticks that began at the beginning of August, which have since brought MKR down from nearly $1,350 towards $1,000.
MKR/USD 1-day chart
This 25% drop, however, appeared as a bullish signal for many investors who imagined a rally similar to the June-July rise when Maker price shot up by 116%. Thus, the accumulation of MKR tokens began primarily with one cohort known as the whales. These large wallet holders belong to the group of addresses that contain between 1,000 MKR to 10,000 MKR. Over the past three weeks, the value of their supply rose from $308,000 to $322,000.
Maker supply held by whales
This suggests that the investors are doing their best to get their hands on the token as soon as possible. Whales are expecting a run-up soon, and to ensure they make enough profit on the potential rise, they are continuously racking up as much MKR as they can.
While the development is bullish, Maker price is not done posting red candlesticks. The Relative Strength Index (RSI) shows that despite sitting at a three-month low, the indicator is yet to dip into the oversold zone. This area historically has been the turning point for the momentum and was last visited by MKR in December 2022.
Thus a decline is still on the cards, plus the accumulated MKR over the past month is currently generating losses for investors. If Maker price continues falling, these whales might be forced to offset their losses and dump their holdings.
Consequently, it would negatively impact the altcoin. Furthermore, about 55% of the entire circulating supply of 81,600 MKR sits in the hands of mid-term holders. Even though their hands are considered safe, these investors are not prone to holding on even in losses. Thus selling from them could lead to a dump in Maker price.
Maker supply distribution
The critical support line for Maker price stands at $880, which marks the 200-day Exponential Moving Average (EMA). Falling through this line could very likely pull MKR lower towards $809 or even $700, should the bearishness intensify.
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