Maker (MKR) has faced notable resistance as significant whale wallet addresses continue to offload the altcoin. Despite this selling pressure, Maker retains its position as one of the largest crypto lending protocols, boasting a total locked value of over $9 billion.
Where is the MKR Price Heading?
Recently, the price of MKR dropped by 3% after pulling back from the resistance level at $3,000. The cryptocurrency remains above the 50-day and 200-day simple moving averages (SMA), which provide support at $2,818 and $2,433, respectively. Since mid-April, MKR has struggled with a strong resistance barrier between $3,000 and $3,160. Lookonchain reports that whale sales began intensifying on April 21, further complicating the price outlook.
What Are the Technical Indicators Saying?
Despite the resistance, technical indicators suggest that Maker DAO’s bullish trend isn’t over. The Moving Average Convergence/Divergence (MACD) indicator hints at a possible reversal, remaining above both the zero and signal lines. Additionally, the Relative Strength Index (RSI) nearly entered the overbought zone on July 16 before retreating to 59.43, with its moving average at 54.87, which could act as support. The Chaikin money flow indicator hit a record high of 0.38 on July 16 and remains strong at 0.34, suggesting potential upward movement after a short pullback.
Key Insights for Investors
- Whale sales began on April 21, adding significant selling pressure.
- Despite a 3% price drop, MKR remains above crucial support levels at $2,818 and $2,433.
- Technical indicators like MACD and RSI hint at potential bullish trends.
- The Chaikin money flow indicator remains strong, indicating buying pressure.
According to Santiment, Maker whales profited over $16 million in July. Nonetheless, MKR’s price saw a 17.2% increase last week. Even with whales moving substantial amounts of MKR to exchanges, the total supply on exchanges fell to 114,750 as of July 16. Despite ongoing profit-taking, MKR’s price holds above the critical support level of $2,650, corresponding to the 50-day SMA.
In conclusion, while whales profiting and market anxiety contribute to short-term resistance around the $3,000 level, technical indicators and key support levels suggest there could be a potential rebound for MKR. Investors should closely monitor these support levels and technical indicators for further price direction.