One of the standout altcoins this year, Maker (MKR), has caught the attention of cryptocurrency whales, with the 9th largest holder recently acquiring an additional $12 million worth of the token. This ongoing whale accumulation MKR holdings is noteworthy and may be indicative of a bullish market structure for the cryptocurrency. However, there are signs that profit-taking may soon commence, which could see the price retract to around $1,100.
Whale Accumulation Patterns and Impact
Whales, or large-scale holders, have been consistently accumulating MKR over various periods. According to on-chain data provider, Spot On Chain, a notable whale added $12.1 million worth of MKR to their portfolio on September 14. This same investor, currently ranked as the 9th largest holder of MKR, now boasts a balance of 16,205 MKR.
Typically, such whale accumulation leads to an immediate or subsequent rise in the token’s price. This pattern is often seen as a ‘buy the dip’ opportunity by the retail cohort who track these whale wallets. Indeed, MKR’s price experienced a 5.01% rise within 24 hours of the recent whale acquisition, trading at $1,215.
Positive Market Structure Amidst Overbought Concerns
The MKR/USD 4-hour chart reveals a predominantly bullish market structure. Despite a minor rejection at $1,177, the subsequent drop to $1,159 served as a springboard, pushing the price above $1,200. However, the current price level might not be the ideal entry point for long MKR positions.
The Relative Strength Index (RSI) at the time of writing stood at 71.37, indicating that MKR is overbought. Historically, when the RSI exceeds 70, a price retracement often follows. This could potentially see MKR’s price dip, possibly to around $1,100, as investors start to take profits.
Outlook and Potential Retracement
Despite the bullish control, the Moving Average Convergence Divergence (MACD) on the 4-hour chart was 6.21, reinforcing the RSI’s bias of strong buying pressure. This suggests that MKR may continue to trade above $1,200, although a push towards $1,300 before a significant retracement appears unlikely.
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While the ongoing whale accumulation MKR holdings suggests optimism among large-scale investors, it’s crucial for individual investors to conduct their own thorough research and due diligence before making any investment decisions.
