As of the time of publication, the value of Maker (MKR) is $1,528, having increased by nearly 2% in the past 24 hours. Notably, the token's performance reflects that of the broader cryptocurrency market, with a 24% increase this month.
However, despite the increase, Maker has been hovering in the range of $1,419 to $1,550 for the past two weeks. Nevertheless, increased whale activity may help break through these levels.
Indeed, data from IntoTheBlock shows that large MKR trades over $100,000 surged by 1,400% in just two days, increasing from 3,840 trades to 60,730 trades.
51% of the total supply of MKR is held by whales. Therefore, if the trading activity of the whale group increases, MKR could break out or break down from the consolidation range, depending on whether these traders are buying or selling.
Key levels to watch
To confirm a bullish trend breakout from the consolidation range on the four-hour chart, Maker needs to break the resistance level of $1,550 with high buying volume.
The volume histogram is short, indicating a lack of strong interest from buyers to push the price above this resistance level. Additionally, the balance volume indicator seems to have flattened, suggesting that buying and selling pressures may be balanced.
Traders should keep an eye on the seller liquidity at $1,678. Maker may rise to absorb this liquidity, and if buyers step in during the rise, it could lead to a sustained increase. Conversely, if this move fails to attract buyers, MKR may revert to the consolidation range or decline.
At the time of writing, the Random Relative Strength Index (RSI) reading is 24, indicating that MKR is oversold. This could also lead to an upward correction in the short term.
At the same time, traders should keep an eye on the support level at $1,419. A break below this support level could lead to a bearish breakout from the consolidation and cause MKR to enter a downtrend.
The decline in the NVT ratio indicates this.
The NVT ratio of Maker's network value to transaction volume has dropped from 121.47 to 13.17 in the last two days, indicating a surge in network transaction volume.
Whenever the NVT ratio declines, it suggests that the token may be undervalued. However, based on the market value to real value (MVRV) ratio rising from 0.84 to 0.87 during the aforementioned period, this may not be the case.
This divergence may indicate that high trading volume is due to profit-taking activities by whales. This could lead to a downward trajectory on the charts.
The derivatives market is filled with uncertainty.
In the derivatives market, traders have been uncertain about Maker. Previously, open contracts dropped from $129 million to $86 million in just two weeks.
When open contracts decrease, it indicates that traders are closing their token positions due to uncertainty about future price performance.
The decline in speculative activities may also be one of the key factors contributing to Maker's consolidation phase.
