Whales Cashing Out MKR Crypto Amid Slight Recovery, Will It Keep Up The Pump?

A whale cashed out 1,186 MKR crypto from the Binance exchange valued at an estimated $1.75 million.

At the same time, 1,987 AAVE tokens, worth around $563,000, were withdrawn from the same account.

Given that large holders tend to send assets off of exchanges into long-term storage or staking, the removal of such a large part of MKR from an exchange could mean reduced selling pressure.

On the flip side, it might also signal preparation for activity in decentralized finance (DeFi) protocols Maker has been pivotal in.

This trick comes at a time when MKR crypto is seen rebounding and questioning the pump’s sustainability.

MKR Crypto’s Recent Performance and Metrics

In the last 24 hours, MKR has enjoyed minimal gains and increased by more than 2%. At the time of writing, the token is sitting at $1,497.37 after a 3.68% daily market cap increase to $1.33 billion.

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Although these gains were nice, trading volume has fallen off a cliff, with a whopping 26.81% drop to $94.18 million.

Even as prices are rising, it can be argued that the sharp decline in volume is an indication of flagging momentum.

As of now, MKR crypto’s total supply is capped out at 1 million. There are currently 892,670 tokens in circulation.

On the other side of the coin, if MakerDAO is still a contender. It sure looks that way as its protocol displays great strength with TVL standing at $4.95 billion.

The robust TVL depicts that Maker’s ecosystem and their decentralised stablecoin, DAI based on the ETH blockchain are being increasingly used by the ecosystem.

With an asset backing reflected in a strong ratio of market cap to TVL of 0.2690, the protocol has historically been used as a source of stability.

Technical Analysis: Mixed Signals Amid Recovery

From a technical perspective, MKR crypto is trying to turn around from recent losses, as the 1-hour chart shows.

The token has recovered from an earlier low of $1,416 and appears to be inching toward recovery. On the chart, you can even see a descending wedge (A bullish reversal indicator).

With MKR only having moderate price gains from this pattern at this point, the possibility of continued upward pressure is a real possibility if buyers can continue with this pressure.

But there’s a caveat. The numbers aren’t too impressive when it comes to trading volume. Volume oscillators display a shift of -20.12% indicating a decrease in trading activity, whilst the price is moving up.

It also displays a divergence between price and volume, which implies this current pump may not be sustainable.

In crypto, historically, strong recoveries are accompanied by growing volume, which provides the necessary liquidity that supports long-term bullish movement.

If this support is taken away, the price may fail to break key resistance levels.

Besides, MKR’s psychological level of $1,500 is a do-or-die barrier for MKR crypto. If buyers can force prices above this level with sufficient volume, this can become a step to higher highs.

Had selling pressure continued, support levels at $1,440 and $1,416 would have come in.