A whale has dumped massive amounts of Maker (MKR) coins, a move that has raised concerns among global crypto enthusiasts. According to data shared by On-chain Lens on Monday, the whale deposited 2,561 Maker tokens worth $5.02 million into Binance. As a result, the trader earned a huge loss of $1.3 million.
Surprisingly, the trader bought the MKR tokens from OKX six months ago with an investment of $6.3 million. In the recent past, he also sold Lido DAO (LDO) and made a loss of $120,000.
Liquidations in the market
The whale’s liquidation could have been propelled by investor panic or profit-taking intentions as the market is currently experiencing chaos amid massive amounts of sell-offs. The action by the trader raised pessimistic sentiments among market participants about Maker’s future price.
Traders are currently struggling with market volatility following Bitcoin climbing to a new all-time high of $106,000 on Monday morning. The price appreciation triggered widespread crypto liquidations worth $320 million in the last 24 hours. High-leverage traders failed to meet margin calls, causing a stream of forced sales.
The latest data from CoinGlass showed that most liquidations over yesterday originated from short traders who expected a drop in the prices of crypto assets like BTC, ETH, XPR, DOGE, PEPE, MKR, and others. Data indicated that 94,559 traders lost about $196.41 million as the market moved in the opposite direction against their expectations.
What awaits Maker?
The price of MKR is currently standing at $1,918.29, up 0.9% over yesterday. The asset is down 6.70% in the last seven days, meaning it is underperforming the global digital asset market, which is up 6.60% currently.
However, MKR is up 32.8% in the last 30 days, depicting its robust recovery. It climbed from a low of $1,000 in October to a height of $2,080 on November 25 and now hovering at around $1,918.29.
While Maker is currently in its continued bullish momentum, it is undergoing a price correction just like the rest of other cryptocurrencies. Meanwhile, the asset demonstrates signs of further upswing. Sustaining move above $1,693 is crucial to maintain its ongoing bullish trend. A fallback below $1,408 could push the token toward a bearish trend.
Maker DAO went through a rebrand process in August when the platform renamed its brand as Sky. However, the change did not garner significant impact on MKR prices. The token’s values remained down since then and only rejuvenated since November following Donald Trump’s election as US president.
