Founder’s Bold Move: MakerDAO Co-Founder Sparks Market Turbulence with $4.5 Million MKR Sell-Off

MKR Sell-Off: MKR’s Rollercoaster Ride: Navigating Choppy Waters Amid Resilience and Uncertainty

Despite an impressive start to the year, Maker (MKR) finds itself on a turbulent path, presenting investors with a mix of signals to decipher. While the decentralized finance (DeFi) stalwart has managed to stay above crucial support levels, recent concerns loom large, fueled by a significant token sale from a prominent wallet and a dip in trading volume.

Maker’s Resilience in the Face of Market Swirls

On a positive note, Maker has displayed resilience amidst the recent market fluctuations. Despite a surge on January 24th, the token has held its own, defying expectations of a more pronounced correction. This steadfast performance has inspired confidence in some analysts, who foresee a continued upward trend for MKR throughout 2024.

However, a recent twist in the plot introduces an air of uncertainty. Insights from on-chain analytics firm Spot on Chain unveil a substantial sell-off by a well-known wallet, reportedly linked to a MakerDAO co-founder. This wallet unloaded a substantial 2,235 MKR over the past two days, amounting to a whopping $4.5 million at present, sparking concerns of a potential “whale dump” that could trigger a price downturn.

Wallet 0xa58 (linked to @RuneKek, #MakerDAO cofounder) has sold 2,235 $MKR for 4.542M $DAI at $2,032 on average in the past 2 days.

Currently, the wallet still holds 2,430 $MKR ($4.92M), and may keep selling.

The $MKR price has been down ~3.39% (2D), since the first sale.

Want… pic.twitter.com/iW2A0pMLHx

— Spot On Chain (@spotonchain) January 28, 2024

Adding to the mixed picture is a decline in trading volume. After reaching a high of $84 million on January 25th, activity has steadily dwindled, currently hovering around $43 million. This dampened trading enthusiasm could indicate waning investor confidence or simply be a temporary lull.

Source: Santiment

A glimmer of hope emerges when examining exchange netflow. Despite the sizable wallet sale, the overall flow of MKR has been dominated by inflows, suggesting that more tokens are being withdrawn from exchanges than sold. This trend, while not as pronounced as the previous outflow witnessed on January 25th, hints at potential accumulation by longer-term holders.

MKR market cap currently at $1.786 billion. Chart: TradingView.com

MKR Technical Struggles Ahead

On the technical front, Maker’s daily chart paints a picture of recent struggles. Following the January 24th gains, prices have embarked on a descent, shedding over 3% by January 27th. This marks the steepest decline since the downtrend began two days prior. The continuation of this selling pressure, particularly if fueled by further whale offloads, could pose a significant challenge for MKR’s immediate future.

MKR price action today. Source: Coingecko

At the time of writing, MKR was trading at $1,939, down 2.6% and 0.7% in the last 24 hours and seven days, data from Coingecko shows.

Maker’s early 2024 journey has been characterized by both encouraging signs and potential pitfalls. While the token’s resilience and positive long-term outlook offer reasons for optimism, the recent whale sale and declining volume inject a dose of caution.

Featured image from iStock, chart from TradingView

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