In the midst of the downturn in the crypto market, MakerDao (MKR) stands strong as it posted big gains. Today, MKR rose with huge gains and added nearly 20% to its value. Despite this impressive rally, the price of MKR has been down from higher levels recently as its holders reserve their profits.
The Reason for the Increase of MakerDao
This sudden increase crypto- caught the attention of two major institutions in the market: 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 was found to have transferred large amounts of MKR to crypto exchange Coinbase. The firm reportedly carries a total of 12.6 MKR worth approximately $12,864 million. This activity has led to speculation that a16z may be preparing to divest some of its MKR assets.
Moreover, a16z transferred another 6,900 MKR (approximately $8 million worth) to a new address today. This move has fueled speculation that the firm may have a strategy to invest these funds in the stock markets for a potential sale. Currently, a16z’s remaining MKR assets are estimated at MKR 12,396 and valued at approximately $14.4 million.
Meanwhile, CMS Holdings also took an active part in the MKR market. The firm deposited 525 MKR (approximately $614,000) in Binance. Also, CMS Holdings has withdrawn 1,325 MKR (worth $1.54 million) from Binance and Bitget at an average price of $793. The firm’s current MKR assets are at 800 MKR, which is estimated to be worth approximately $936,000.
Will MKR Price Rise To $1,600?
The significant change in the MKR holdings of key players such as a16z and CMS Holdings likely spurred the token’s price increase. The trading activities of these players brought Maker to the fore, attracting new buyers and pushing the price even higher.
However, after peaking around $1,300, the price entered a period of consolidation due to profit taking. Despite a bearish attempt to push the coin below $1,170, the bulls maintained the momentum and pushed above the 23.6% Fibonacci channel. At the time of this writing, MKR is trading at $1,160, up 19.1% in the last 24 hours.
If the bulls manage to push the price above $1,300, this could boost their confidence and push the price towards the next level of resistance at $1,379. A break above this level could signal another uptrend towards $1,645.
On the other hand, sellers are poised to take control around $1,300. A downtrend at this point could send the asset below multiple Fibonacci channels and lead to a consolidation near $1,050.