News Report:
Manufacturer prices have rebounded from a nine-month low, indicating that prices may have bottomed out.
However, exchange data shows a large influx of MKR held by exchanges.
Manufacturer [MKR]
Since MakerDAO announced its rebranding as Sky, its performance has been poor. Last week, Maker plummeted to a nine-month low, and although the token showed signs of a rebound, several bearish indicators are still evident.
At the time of publication, MKR’s trading price is $1600, down 24% in the past 30 days. The token’s market capitalization has also dropped to $1.4 billion per share.
CoinMarketCap
Since July, MKR has been at a lower high, indicating a long-term bearish trend. The token is also moving within a downtrend channel but is currently attempting to break out.
However, breakouts from the downtrend channel are usually supported by a surge in buying volume. Currently, this has not occurred as volume indicators show a decrease in trading volume.
The volume bar chart has also turned red, indicating that selling pressure has outweighed buying pressure.
Meanwhile, the Moving Average Convergence Divergence (MACD) line shows bullish divergence. This line is still negative, but it has crossed the signal line and is tilting northward.
Therefore, bullish momentum may be strengthening.
A similar trend is also seen in the green MACD histogram bars. However, to confirm a strong bullish reversal, an increase in buying activity is needed.
Manufacturer exchange flow data
Maker’s rebranding to Sky has been undermined
Controversy arose when the team announced the upgrade of the DAI stablecoin to USDS.
Recently, it was announced that the USDS stablecoin will be available on Solana, driving a slight increase in MKR.
However, this positive sentiment is short-lived as exchange data suggests that selling activity may be on the rise. According to CryptoQuant, the MKR supply ratio on exchanges has reached its highest level since April.
This data indicates an increase in the supply of MKR on exchanges. While this may indicate that some traders are swapping their MKR tokens for SKY, considering the recent price decline, it may also indicate the presence of selling pressure.
Reading
Manufacturer [MKR] price prediction
2024-2025
Buyers need to absorb this selling pressure to help Maker recover from the range lows. However, given the overall bearish trend, traders may not be ready to enter the market yet.
Data from IntoTheBlock shows that shorts outweigh longs, indicating the overall sentiment is still negative.
