Why Maker investors should have a look at these metrics

• Justin Sun deposit­ed MKR worth over $4 mil­lion in Binance.
• MKR’s open inter­est declined, increas­ing the chances of a trend reversal.

Maker’s [MKR] price declined by 2% in the last sev­en days and by over 1% in the last 24 hours. At the time of writ­ing, MKR was trad­ing at $624.38 with a mar­ket cap­i­tal­iza­tion of over $610 million. 

How­ev­er, Santiment’s 24 May tweet revealed an inter­est­ing devel­op­ment that could pos­i­tive­ly influ­ence MKR’s price action in the com­ing days.

Read Maker’s [MKR] Price Pre­dic­tion 2023–24

Investors are accumulating

As per the tweet, MKR whales and sharks were in an accu­mu­la­tion phase. In gen­er­al, high­er accu­mu­la­tion means more con­fi­dence among investors in a token. 

There­fore, the chances of a price uptick were like­ly. Wal­lets with $100,000–$1 mil­lion were seen accu­mu­lat­ing the token in May. 

🐳 Whales and sharks are show­ing accu­mu­la­tion signs for a few key #alt­coins right now as mar­kets are rang­ing. Keep an eye on #Ban­qi $QI, #Pros­per $PRO, and #Mak­er $MKR. These assets are all see­ing the $100k-$1m tier of wal­lets accu­mu­lat­ing here in May. https://t.co/7hziIC3xvM pic.twitter.com/Epx6YMSlFa

— San­ti­ment (@santimentfeed) May 23, 2023

How­ev­er, it was inter­est­ing to see that Justin Sun, the founder of Tron [TRX] fol­lowed the oth­er route. 

Lookonchain’s tweet from 23 May 2023 point­ed out that Sun deposit­ed 6,801 MKR, which was worth more than $4 mil­lion, in Binance. 

Pay atten­tion to the price changes of $MKR.

Justin Sun deposit­ed 6,801 $MKR ($4.3M) into #Binance 1 hr ago.https://t.co/FuPGigqgx7 pic.twitter.com/sMQKY6Q8fO

— Lookon­chain (@lookonchain) May 23, 2023

This is what the metrics suggest

The accu­mu­la­tion was also evi­dent from oth­er metrics.

MKR’s sup­ply on exchanges declined while its sup­ply out­side of exchanges increased. This is a bull­ish sig­nal and can soon be reflect­ed in Maker’s price chart. 

Source: San­ti­ment

MKR’s net­work growth was high, which is gen­er­al­ly a pos­i­tive sig­nal. Its veloc­i­ty spiked on 24 May 2023, mean­ing that the token was used in trans­ac­tions more often with­in a set time frame. 

Things were look­ing pos­i­tive in the deriv­a­tives mar­ket too, as evi­dent from its green Binance fund­ing rate. 

Source: San­ti­ment

A trend reversal for Maker soon?

Like the afore­men­tioned met­rics, Coin­glass’ data also gave hope for a trend rever­sal in the com­ing days. Mak­er’s open inter­est has been on a declin­ing trend for quite some time. 

The mar­ket is liq­ui­dat­ing when open inter­est declines, which sug­gests that the cur­rent price trend is end­ing. Open inter­est there­fore offers a lead­ing indi­ca­tor of a forth­com­ing change in trend.

Source: Coin­glass

Real­is­tic or not, here’s MKR mar­ket cap in BTC‘s terms

Will the bulls take over?

A look at Maker’s MACD revealed that the bulls and the bears were fight­ing to gain an advan­tage over each oth­er. The Mon­ey Flow Index (MFI) reg­is­tered an uptick. 

Con­sid­er­ing the met­rics and MFI indi­ca­tor, it seemed like­ly for the bulls to win the bat­tle. How­ev­er, MKR’s Chaikin Mon­ey Flow (CMF) went down slight­ly, which could mean there is trou­ble in the near term. 

Source: Trad­ingView