Maker co-founder dumps MKR worth $4.5 mln: What’s going on?
- Maker co-founder sold over half of his holdings.
- MKR has continued to trend positively despite declines.
Maker [MKR] started the year on a positive note, maintaining its position above crucial levels despite encountering a sequence of downward trends.
However, recent activity involving a prominent wallet has sparked interest, as assets valued in the millions have been transferred to exchanges.
Over $4 million MKR sold off
Notably, a well-known wallet, associated with the co-founder of MakerDao, sold 2,235 MKR in the last two days, amounting to over $4.5 million as of press time.
This recent sale attracted attention due to the wallet owner’s identity and the appearance of a potential dump.
Maker volume and exchange flow show mixed signals
An examination of Maker’s volume over the past few days showed a decline. After reaching $84 million on the 25th of January, the volume has gradually decreased.
This represented the highest volume observed for MKR in the last ten days. As of press time, the volume was around $43 million, with a noticeable decline.
However, some relief can be found when analyzing the exchange netflow. The chart showed that the last significant flow for MKR occurred on the 25th of January, and it was an outflow.
On that day, over 2,600 MKR left various exchanges, coinciding with the last major volume spike seen on the Santiment volume chart. This suggests that more assets were withdrawn from exchanges than were sold.
Although inflows have dominated recent activity, they have not matched the volume of the previous outflow.
MKR remains positive despite challenges
AMBCrypto’s examination of Maker on the daily timeframe chart showed a recent downtrend in the past few days.
Following a significant uptrend on the 24th of January, gaining over 10%, prices reversed into a downtrend.
At the close of trading on the 27th of January, MKR had incurred a loss of over 3%, marking the highest decline since the downtrend commenced two days ago.
The potential for continued decline exists if the sales from the identified wallet persist.
It’s important to note that the decline is not solely attributed to the volume sold by the wallet but also to the identity of the wallet’s owner.
How much are 1,10,100 MKRs worth today?
Despite the recent declines, MKR trended above its short and long-moving averages (yellow and blue lines). It also maintained a position above the neutral line on its Relative Strength Index (RSI) as of this writing.
This suggested that the overall price trend remained positive, even in the face of recent declines.