MakerDAO stands at the mercy of bears as MKR slips below $1,000 in the last five days

On 18 July, MakerDAO’s native token, MKR, rode the ongoing bull wave to mark its spot at a high of $1,043. However, this was followed by a retracement that sent the price of the token chasing new lows. With a 7% decline in price since 18 July, MKR exchanged hands at $970.87 at press time.

According to data from Santiment, at the closing hours of the trading week on 22 July, a sudden spike in whale activity was spotted for MKR. As a result, the count for whale transactions above $100k rose to a high of 14 transactions representing the highest spike in the metric since 30 June.

So what else happened since 18 July?

Price performance analysis

On 18 July, MKR closed the trading day with a 10% uptick in price. However, the token’s halt above the $1,000 level was short-lived as it embarked on a downtrend on 19 July. At press time, the token traded at $970.87, logging a 7% decline in price since the high of 18 July.

After the high of 18 July, increased trading activity for the XRP token ensued. By 19 July, the token’s trading volume had grown by over 20%. However, as the bulls weakened over the next few days, the token’s trading volume also steadily declined. This stood at 133.07 million at press time, dropping by 65% in the last four days.

Source: Santiment

On a daily chart, the price of the MKR token was down 0.55% in the last 24 hours. However, buying pressure was gaining momentum at the time of press as the token’s Relative Strength Index (RSI) was spotted in an uptrend at 51.19.

Currently trading at its January 2021 level, MKR has declined by 64% since it touched its all-time high of $6,339 on 3 May, 2021.

Source: TradingView

Nothing was the same after 18 July

A look at other on-chain metrics revealed a pattern of decline since 18 July. For example, a total of 131 new addresses were created on the MKR network on 18 July, a 36% growth from the 93 recorded on the previous day. However, over the next few days, this metric plunged by 22%. At press time, new addresses on the network stood at 121 addresses. 

Also, the number of unique addresses that have transacted the altcoin followed a similar pattern of decline in the last four days. After marking a high of 363 addresses on 18 July, a 75% decline in daily active addresses has since been recorded. This metric stood at 88 addresses at the time of writing.

Source: Santiment

Lastly, on a social front, the token has seen a decline in its social dominance and social volume. In the last four days, its social dominance has dropped by 5%. In the same period, its social volume also declined by 87%.

Source: Santiment