At the start of the new year, Maker (MKR) demonstrated resilience in the face of some market downturns, maintaining its strength despite prevailing downward trends.
However, a recent notable wallet transfer involving the sale of millions of dollars worth of MKR on exchanges has raised market concerns.
The wallet in question is linked to one of MakerDao‘s co-founders, and the sale of 2,235 MKR, worth over $4 million, drew attention due to the wallet owner’s prominence, raising concerns about a potential market dump.
Despite a decline in trading volume, which fell from $84 million on January 25 to around $43 million, there are signs of stability. On January 25, more MKR exited exchanges than were sold, indicating a balanced market sentiment.
Despite recent downtrends, MKR has managed to keep levels above critical thresholds. Notably, on January 24, MKR increased by 10%, followed by a modest 3% loss on January 27.
The sale of the influential wallet, combined with questions about the owner’s identity, contributed to the temporary decline.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.