As MKR prices cross $1500, here’s a look at what caused the surge

Posted: September 29, 2023

• MakerDAO’s MKR token bucked the bearish trend and surged by 40% over the past month.
• Whale activity and positive sentiment contributed to MKR’s impressive performance.

In the midst of a crypto market downturn, Maker’s [MKR] native token MKR was a standout performer, experiencing a remarkable surge in recent weeks. This surge in MKR’s price, which has been ongoing for the past month, was nothing short of impressive, marking a significant 40% gain and pushing its value beyond the $1,500 mark.

Is your portfolio green? Check out the MKR Profit Calculator

Whales make their moves

Notably, an influential whale recently made a substantial deposit of 3,527 MKR tokens on Binance, a move that capitalized on the token’s price increase.

At present, the whale still holds 10,000 MKR, and the total profits from it amount to a staggering $5.12 million, reflecting an impressive 34% increase in value.

The price of $MKR has increased by ~40% in the past 1 month and topped $1,500 today.

A smart whale deposited 3,527 $MKR($5.27M) to #Binance to make a profit an hour ago.

And currently has 10,000 $MKR($14.9M) left, the total profit is ~$5.12M(+34%).https://t.co/4atyyejMwJ pic.twitter.com/SyEBI3pNg4

— Lookonchain (@lookonchain) September 28, 2023

Another intriguing development involved a second whale which decided to sell 335,616 UNI tokens for 895 ETH, equivalent to $1.43 million. This move, however, resulted in a loss.

Subsequently, the same individual reinvested 899 ETH, approximately $1.44 million, to purchase 958 MKR tokens. The initial withdrawal of 335,616 UNI tokens from Binance took place when UNI was valued at $5.86, incurring a loss of $535,000.

As of the latest data available, MKR was trading at an impressive $1,516.64. During its surge it displayed a consistent pattern of achieving higher highs and higher lows, indicative of a bullish trend.

The Relative Strength Index (RSI), a key technical indicator, stood at 79.34, signifying high bullish momentum around the token.

However, it was worth noting that the Chaikin Money Flow (CMF), although still relatively high at 0.25, experienced a slight decline in recent times.

Source: Trading View

Will profit taking hinder MKR’s growth?

An aspect in favor of MKR was the overwhelmingly positive sentiment surrounding MKR, as evidenced by a notable increase in weighted sentiment. This reflected optimism and enthusiasm within the community regarding the token’s future prospects.

In addition to the positive sentiment, the Market-Value-to-Realized-Value (MVRV) ratio also exhibited an upward trend. The MVRV ratio showcased the profitability of token holders.

However, high profitability could lead to heightened selling pressure as investors seek to capitalize on their gains, raising questions about the possibility of a future price correction.

Source: Santiment

Realistic or not, here’s MKR’s market cap in BTC terms

Taking a closer look at trader sentiment, there was a slight decrease in the percentage of long positions. Over the past few weeks, this percentage declined from 52.52% to 51.61%.

While this shift may seem subtle, it suggests some degree of uncertainty among traders. The future direction of MKR’s price is heavily dependent on their next moves.

Source: coinglass