Why Maker might witness another price correction
- MKR failed to hold on to the $1,270-$1,300 support zone and went under $1,230.
- On-chain metrics and market indicators looked bearish.
Maker [MKR] enjoyed a comfortable bull rally over the last few weeks, which pushed its price up. In fact, it even managed to cross $1,300 during the beginning of August. However, the momentum declined as the token once again settled under the $1,3000 level.
Realistic or not, here’s MKR market cap in BTC terms
A few red flags for Maker
Maker, which is a market leader in terms of real-world assets, surprised investors with a promising bull rally in mid-July 2023. However, the growth trajectory came down over the last week as its price moved marginally.
Santiment’s latest report pointed out quite a few factors that might have played their roles in slowing down MKR’s growth.
?Social dominance toward #Maker has soared as prices surged past $1,200, and temporarily, $1,300, this past week. Our latest insight covers the latest on address activity, deposit transactions, and circulation to analyze if $MKR's breakout will continue. https://t.co/VxTMkaun6n pic.twitter.com/nhhl7JU0Px
— Santiment (@santimentfeed) August 7, 2023
For instance, MKR’s social dominance registered a decline while its price continued to rise. This showed that the price cycle’s peak interest may have been reached.
Additionally, the token’s active addresses peaked around 21 July before beginning to decline. As per the report, altcoins’ 30-day MVRV Ratio usually peaks at around 30–30%. In MKR’s case, the metric reached 36%, suggesting a possible market peak.
Not only that, but when MKR’s price was rising in June, its deposits on CEXs and DEXs dropped. Similar patterns on the chart may emerge as a result of a price increase mixed with a decrease in the urge to sell. This also meant that MKR might witness a price correction.
Maker is struggling to go above $1,300
MKR failed to hold on to the $1,270-$1,300 support zone, which showed bearish intent. CoinMarketCap’s data revealed that Maker’s price action turned sluggish, as it only moved marginally over the last week.
At press time, it was trading at $1,222.54 with a market capitalization of over $1.1 billion. A look at MKR’s on-chain metrics suggested that the token could witness another price correction.
Its net deposits on exchanges were high compared to the 7-day average, suggesting that it was under selling pressure. MKR’s supply on exchanges rose sharply last week, which was a bearish signal.
Additionally, Maker’s open interest plummeted, suggesting that derivatives investors were not buying the token.
How much are 1,10,100 MKRs worth today
Maker’s MACD displayed a bearish upper hand in the market. On top of that, the Chaikin Money Flow registered a downward trend and went below the neutral mark, increasing the chances of a price decline.
Nonetheless, MKR’s Exponential Moving Average (EMA) Ribbon continued to be in the bulls’ favor.