- Justin Sun deposited MKR worth over $4 million in Binance.
- MKR’s open interest declined, increasing the chances of a trend reversal.
Maker’s [MKR] price declined by 2% in the last seven days and by over 1% in the last 24 hours. At the time of writing, MKR was trading at $624.38 with a market capitalization of over $610 million.
However, Santiment’s 24 May tweet revealed an interesting development that could positively influence MKR’s price action in the coming days.
Read Maker’s [MKR] Price Prediction 2023-24
Investors are accumulating
As per the tweet, MKR whales and sharks were in an accumulation phase. In general, higher accumulation means more confidence among investors in a token.
Therefore, the chances of a price uptick were likely. Wallets with $100,000–$1 million were seen accumulating the token in May.
🐳 Whales and sharks are showing accumulation signs for a few key #altcoins right now as markets are ranging. Keep an eye on #Banqi $QI, #Prosper $PRO, and #Maker $MKR. These assets are all seeing the $100k-$1m tier of wallets accumulating here in May. https://t.co/7hziIC3xvM pic.twitter.com/Epx6YMSlFa
— Santiment (@santimentfeed) May 23, 2023
However, it was interesting to see that Justin Sun, the founder of Tron [TRX] followed the other route.
Lookonchain’s tweet from 23 May 2023 pointed out that Sun deposited 6,801 MKR, which was worth more than $4 million, in Binance.
Pay attention to the price changes of $MKR.
Justin Sun deposited 6,801 $MKR ($4.3M) into #Binance 1 hr ago.https://t.co/FuPGigqgx7 pic.twitter.com/sMQKY6Q8fO
— Lookonchain (@lookonchain) May 23, 2023
This is what the metrics suggest
The accumulation was also evident from other metrics.
MKR’s supply on exchanges declined while its supply outside of exchanges increased. This is a bullish signal and can soon be reflected in Maker’s price chart.
MKR’s network growth was high, which is generally a positive signal. Its velocity spiked on 24 May 2023, meaning that the token was used in transactions more often within a set time frame.
Things were looking positive in the derivatives market too, as evident from its green Binance funding rate.
A trend reversal for Maker soon?
Like the aforementioned metrics, Coinglass’ data also gave hope for a trend reversal in the coming days. Maker’s open interest has been on a declining trend for quite some time.
The market is liquidating when open interest declines, which suggests that the current price trend is ending. Open interest therefore offers a leading indicator of a forthcoming change in trend.
Realistic or not, here’s MKR market cap in BTC‘s terms
Will the bulls take over?
A look at Maker’s MACD revealed that the bulls and the bears were fighting to gain an advantage over each other. The Money Flow Index (MFI) registered an uptick.
Considering the metrics and MFI indicator, it seemed likely for the bulls to win the battle. However, MKR’s Chaikin Money Flow (CMF) went down slightly, which could mean there is trouble in the near term.