The price of governance token Maker (MKR) has sunk below the key $1,400 support level, according to on-chain analytics firm Spot On Chain. In response, some major MKR holders appear to be offloading portions of their holdings.
Spot On Chain identified two large whales collectively swapping around 983 MKR worth over $1.4 million to Ethereum over the past day.
One whale known as 0x432 closed a highly profitable MKR position, gaining an estimated $506,000 on tokens acquired in September below $1,160. This whale fully divested the 649 MKR holdings via DEX to realize gains as the price declined.
Meanwhile, whale 0x373 swapped 333 MKR to ETH while still retaining a 1,300 MKR position. This holder has profited an estimated $445,000 on MKR acquired in September.
These maneuvers illustrate savvy traders taking gains as conditions worsen. With MKR flashing technical weakness, locking in profits on underwater positions allows whales to book gains while limiting downside exposure.
However, most are not completely abandoning MKR, indicating a long-term belief in the project’s value. The sales likely constitute portfolio rebalancing rather than a verdict on Maker’s prospects.
Still, the actions hint at a lack of urgency among major holders to accumulate at current prices. Their lukewarm engagement highlights downside risks in the near term if support levels continue to falter. However, according to the latest data, MKR is trading at $1,414.
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