The MakerDAO native token, MKR, has surged toward its early August highs, sending bullish signals rippling through the cryptocurrency market. This resurgence has reignited optimism among investors and speculators alike, suggesting that MKR may be poised to explore uncharted territory. 

One of the pivotal factors driving this remarkable rally is the significant accumulation of MKR tokens by a group of crypto whales.

This acquisition, confirmed by on-chain data from Santiment, reflects the growing interest in the cryptocurrency among large holders. Such whale activity is often seen as a bullish signal, suggesting confidence in the asset’s long-term potential. 

Whale Activity And Its Impact On MakerDao (MKR) Price

Evidence of the burgeoning optimism surrounding MKR comes in the form of substantial whale activity. In a recent revelation, Lookonchain disclosed that two prominent crypto whales made a foray into the MKR market in September, injecting millions of dollars into the token.

A price report further corroborates this narrative, showcasing a discernible increase in MKR accumulation across the network.

2 whales are accumulating $MKR.

Whale “0x3737” spent 1,194 $ETH($1.95M) to buy 1,700 $MKR at $1,147 since Sept 4.https://t.co/1kBo03U5Us

Whale “0xaD0” spent 992 $ETH($1.63M) to buy 1,261 $MKR at $1,291 since Sept 18.https://t.co/aYVTJkgA1s pic.twitter.com/XojIUQrSGk

— Lookonchain (@lookonchain) September 20, 2023

The infusion of substantial capital by these whales has restructured the market dynamics, steering it into a bullish trajectory. This bullish momentum has propelled MKR’s price action, raising hopes for a sustained upward trajectory.

Supply Dynamics And The Road Ahead

A separate report resonates with the prevailing bullish sentiment, highlighting an intriguing observation. The supply of MKR tokens held by top addresses has exhibited a gradual uptick since September 6.

This intriguing development suggests that the recent price gains witnessed by MKR are more than just a fleeting phenomenon and may indeed have the potential for longevity.

MKR Sustains Weekly Advance

As of the latest data from CoinGecko, MKR is currently priced at $1,294, marking a 3.7% decline over the past 24 hours but still maintaining a seven-day surge of 9.1%. These price movements underscore the cryptocurrency’s recent resilience, giving investors optimism the token can hit the vaunted $1,700 target.

Related Reading: Bitcoin Enjoys Growing Favorable Conditions, Top Analyst Says

Maker DAO’s MKR token has experienced a remarkable resurgence, driven in part by the accumulation of tokens by influential crypto whales. The bullish sentiment has sparked hopes of new all-time highs, but caution is advised, as weak buying volume could jeopardize the sustainability of the rally.

As MKR continues its journey, investors and traders will keenly watch for signs of genuine demand to ascertain the token’s true potential in the weeks to come.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

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Filed under: Bitcoin - @ September 22, 2023 6:56 am