MakerDAO whales sold over $9 million in tokens, MKR price takes a hit

MakerDAO (MKR) price is down nearly 2% on Monday. The token is experiencing an increase in selling pressure as whales shed their MKR holdings in the past day. Crypto intelligence tracker Spotonchain identified two whale wallets that sold over 3,075 MKR tokens, likely ushering a correction in the asset’s price. 

MKR price declines as Maker whales shed holdings

Two whale wallets, identified as 0xcf9 and 0xa09 sold 3,075 MKR tokens for $9.34 million in stablecoins, USDT and DAI, according to Spotonchain. The whales sold their MKR holdings at an average price of $3,039. After this movement, the asset’s price is down nearly 2% on Monday. 

Typically, asset sale by whales drives down its price as it increases the selling pressure on the asset. Data from Santiment shows an increase in exchange reserves of MKR, between April 20 and 22. Exchange holdings of MKR climbed by nearly 5% within two days. Higher exchange reserves of an asset increase selling pressure and negatively influence the price. 

The chart below shows the instances in the past six months when MKR supply on exchanges climbed and ushered in a decline in the asset’s price. 

MKR supply on exchanges and price 

Market Value to Realized Value (MVRV) is a ratio between the market value of a crypto-asset and its realized value. It also helps traders identify the tops and bottoms. The MVRV ratio for 7-days and 30-days shows how price recovers when the indicator falls into the opportunity zone, represented by the enclosed red box in the chart below. The 7-day MVRV ratio for MKR  is within the opportunity zone, as of April 22. 

MKR price could recover soon, according to the MVRV metric.

Maker MVRV ratio 7-days and 30-days

MKR price is $2,955, at the time of writing.