As reported by the Lookonchain , the whale wallet identified as ‘0x9e74’ has emerged as a significant player in the MKR space. Since July 25, 2023, this investor has strategically withdrawn approximately 4,776 MKR tokens from Binance since yesterday, November 22.
The latest transaction alone involved transferring MKR tokens valued at $1.7 million from the exchange. This consistent and significant investment pattern in Maker (MKR) highlights the investor’s robust confidence in the token’s prospects.
Maker, an integral part of the MakerDAO ecosystem, has garnered considerable attention, especially for its pivotal role in the decentralized finance (DeFi) sector as a key lending entity. Meanwhile, the price of MKR has spiked by 9% from yesterday’s low of $1,370 to $1,490 on today’s high.
Since it is 10% short of its yearly high of $1,645, will this whale activity cause a further increase to a new one?
Looking at the total transaction by volume from November 19, it started gaining traction. Beginning at a low of $1.9M, it climbed to nearly $38M at today’s high.
The previous peak was on October 24, when the total volume spiked to $166M. At the time, the price of MRK spiked by 10% and made its yearly high. As it now trades close to those levels, this new sign of accumulation could propel further growth.
In our last MKR analysis, posted on September 27, we projected the uptrend from January to end at the $1,520 area, after which the first significant correction would be expected. This correction could have started as the price reached our target and started moving sideways, but there is another bullish interpretation.
We saw a breakout above its significant resistance zone, and the price maintained trading above it after the interaction. The previous resistance turned support, with one more high ahead.
In this bullish interpretation, the ascending structure from July 31 until November 12 low was wave 4 from the five-wave impulse and a flat correction. This is contrary to a bearish one, which counts the yearly high as the ending point of wave 5.
Both scenarios are in play; we will soon see which turns primary. The confirmation would come as a larger descending move from the current level or a new lower low, leading the price back below its resistance zone around $1,200.
But if the bullish case continues, the price will continue to rise to a higher high of $1,760 and potentially reach $2,200 at a further point.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.