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MKR prices are currently testing a critical psychological threshold, with market dynamics hinting at a possible bullish reversal.
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Despite recent bearish pressure, on-chain metrics suggest that whale activity may be signaling an upcoming accumulation phase.
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According to Lookonchain, a prominent whale has recently invested significantly in MKR, illustrating renewed interest among large investors.
This article explores MKR’s recent price movements, key psychological levels, and the implications of whale activity on its future performance.
The key $1500 psychological level
Maker (MKR) is currently hovering around the vital psychological support level at approximately $1,500. Technical indicators and the overall daily chart structure convey a prevailing bearish sentiment surrounding the asset.
Should MKR fail to stay above this level, it may trigger a further descent towards $1,345. The current market situation displays uncertainty; while buyers are attempting to maintain their stance, sellers continue to hold substantial influence.
Conversely, if MKR decisively breaches the $1,500 threshold, a decline to around $1,345 could follow, opening the door for more significant market movements.
Source: TradingView
Accumulation phase incoming?
While MKR’s price action has been predominantly bearish, its on-chain data reveals a more optimistic narrative. The past day has seen a marked increase of over 10% in large transactions, indicating heightened trading activity from major investors.
Source: IntoTheBlock
Recent reports from Lookonchain reveal that a whale wallet identified as 0xB4eA recently acquired 3,334 MKR for approximately $4.89 million from decentralized exchanges and Binance. Additionally, another wallet, 0x1d1d, withdrew 900 MKR ($1.33 million) from Binance, indicating a potential accumulation trend.
Moreover, MKR’s network growth appears to be on an upward trajectory. Data from IntoTheBlock showcased a relative recovery, with the network growth rate currently at 1.29%.
What next for Maker?
The battle between bulls and bears at the crucial $1,500 psychological level remains fierce. If MKR can hold above this essential support, sustained buying pressure may facilitate a recovery in prices. Conversely, failing to maintain this pivotal zone could pave the way for a decline towards $1,345.
Conclusion
In summary, while MKR contends with significant bearish forces, increasingly positive on-chain metrics from whale activities and network growth suggest potential for a bullish reversal. Traders and investors will need to closely monitor the $1,500 level to gauge the future direction of the asset.
