Maker rallies toward $4,000 target even as whales take profits in MKR

Maker (MKR) extended gains by nearly 33% in the past seven days, as seen on Binance. On-chain data shows that even as Maker holders take profits on their MKR holdings, the governance token sustains above key support. 

MKR could extend gains, erase losses from the past two months, and make a comeback to the year-to-date peak of $4,074. 

Three reasons why Maker MKR could return to 2024 peak

Maker supply on exchanges has dropped nearly 10% since its peak of 128,390 on July 10. A decline in the token’s supply across exchange wallets is typically considered bullish for the asset’s price because it reduces the available volume of the token for sale. 

Maker supply on exchanges is down to 114,750 tokens as of Tuesday, July 16. Data from Santiment shows that MKR holders realized over $15 million in gains since the beginning of July. Even as holders take profits, Maker sustains above key support at $2,600.

Maker supply on exchanges vs. MKR price 

The network growth metric on Santiment, which tracks whether a project is gaining or losing traction among investors, shows that MKR is gaining traction in July. Network growth metric is up 35% since the beginning of July, as seen in the chart below. This supports a bullish thesis for Maker.

Network growth vs. MKR price 

Active addresses is another key on-chain metric that identifies the volume of addresses that are active on the chain. In July, the count of active addresses is up by 142 on the daily timeframe. Higher activity is correlated with higher relevance and traction of the token among market participants.

Maker active addresses vs. MKR price 

The consistent spikes in whale transactions valued at $100,000 and higher and $1 million and higher are indicative of large wallet investors taking profits in Maker. The spikes indicate whale transfers. 

Whale transactions in two segments

MKR sustains recent gains even as traders take profits

Maker (MKR) is rallying at the time of writing and trades at $2,901 on Tuesday, above key support of $2,600. The 61.8% Fibonacci retracement of the rally from the March 5 low of $1,772 to the April 4 year-to-date peak of $4,074, at $2,651, is a key support level for the governance token of Maker DAO. 

If Maker’s price sustains its upward trend, MKR could extend gains by over 40% and rally towards its 2024 peak. 

The momentum indicator Moving Average Convergence Divergence (MACD) flashes green histogram bars above the neutral line, supporting a bullish thesis for gains in MKR. The indicator implies there is underlying positive momentum in MKR. 

MKR/USDT daily chart 

In the event of a correction in Maker’s price, MKR could find support at $2,651. A daily candlestick close below this level could invalidate the bullish thesis.