Maker DAO (MKR) Suddenly Explodes 18% Higher – Why You Should Avoid This Pump

Recently, MakerDAO ($MKR) experienced an 18% price surge, catching the attention of both traders and analysts. While the price has retained some gains, there are signs suggesting that the uptick could be artificially driven. according to trader Ali.

The red flags include a spike in exchange inflow, increased whale transaction count, and an influx of 10,000 MKR tokens into exchanges just as prices began to ascend. Could this mean that the digital asset is in for a correction, potentially retracing to $1,000 or even $900?

Exchange Inflows and Whale Transactions: The Smoking Guns?

It’s worth noting that the recent surge in MakerDAO’s price wasn’t just fueled by general market sentiment; several specific indicators were at play. Exchange Inflow, or the volume of a particular asset moving into trading platforms, saw a noticeable spike.

Concurrently, the Whale Transaction Count, or the number of significant transactions being carried out by large holders (commonly referred to as “whales”), increased significantly.

Source: Santiment – Start using it today

This coincided with an influx of 10,000 MKR tokens into various exchanges. The synchrony of these events raises questions about the organic nature of the price movement. In crypto markets, large inflows into exchanges often precede sell-offs, as whales move their holdings onto an exchange in preparation for selling.

Next Big Airdrop?

Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!

Show more +

When this is combined with a rise in whale transactions, it can point toward coordinated market activity that may not be wholly organic.

The correlation of these factors could be a harbinger for a price retrace. If the price movement was indeed manipulated or artificially boosted, market corrections could be imminent. MakerDAO’s $MKR could potentially retrace to around $1,000 or even as low as $900, effectively wiping out the recent gains.

While it’s not uncommon for asset prices to experience sudden surges due to external influences like news events or significant platform upgrades, the confluence of red flags in MakerDAO’s recent price action indicates that caution is warranted. Traders and investors should keep an eye on market indicators to distinguish between organic growth and potentially manipulated price movements.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

We will be happy to hear your thoughts

Leave a reply

CaptainAltcoin
Logo