As the crypto market swiftly turned bearish from yesterday’s scarcely bullish outlook, top coins have found new support zones. Interestingly, amidst this downturn, MakerDao’s MKR stands strong as it recorded massive gains. Today, MKR soared higher with massive gains, adding nearly 20% to its value. Despite this impressive rally, MKR’s price has recently experienced a dip at higher levels as holders booked their profit.
Here’s Why Maker Token Skyrocketed Today
This abrupt surge has caught the attention of two significant entities in the crypto market: the venture capital firm Andreessen Horowitz (a16z) and digital asset fund CMS Holdings. This observation comes from Lookonchain, a leading analyst of whale transactions and activities.
a16z has been spotted transferring massive amounts of MKR to the crypto exchange Coinbase. The firm has reportedly moved a total of 12,864 MKR, which is approximately worth $12.6 million. This activity has sparked speculation that a16z could be preparing to offload a portion of its MKR holdings.
Moreover, a16z transferred another 6,900 MKR (valued around $8 million) to a fresh address today. This move has added fuel to the fire of speculation that the firm might be strategizing to deposit these funds into exchanges for a potential sell-off. Currently, a16z’s remaining MKR holdings are at 12,396 MKR, estimated to be worth around $14.4 million.
In the meantime, CMS Holdings has been active in the MKR market as well. The firm deposited 525 MKR (around $614K) into Binance. Additionally, CMS Holdings withdrew 1,325 MKR (valued at $1.54 million) from Binance and Bitget at an average price of $793. The firm’s current MKR holdings are at 800 MKR, estimated to be worth approximately $936K.
Also Read: Bitcoin Sparks A Surge Toward $30,000 From Critical Support! Is It The Time To Go Long On BTC Price?
Will MKR Price Surge To $1,600?
The significant change in MKR holdings by key players like a16z and CMS Holdings likely spurred the token’s price surge. Their trading activity has spotlighted Maker, attracting new buyers and further driving up the price.
However, after peaking near $1,300, the price entered a period of consolidation due to profit-taking. Despite a bearish attempt to push the token below $1,170, bulls maintained momentum and pushed it above the 23.6% Fibonacci channel. At the time of writing, MKR is trading at $1,160, marking a 19.1% increase in the last 24 hours.
If the bulls manage to send the price above $1,300, it could bolster their confidence and push the price toward the next resistance level at $1,379. A breakout above this level could signal another soaring trend toward $1,645.
On the other hand, sellers are poised to take control near the $1,300 mark. A bearish reversal at this point could send the asset below multiple Fibonacci channels and lead to a consolidation around $1,050.
