Maker [MKR] Succumbs to Bearish Pressure, Drops to Eight-Month Low

The recent Maker [MKR] rebrand to Sky was meant to boost network usage and ensure regulatory compliance. However, the move appears to have not

An early investor in Maker [MKR] has sold over half of their stash, as per data from Spot On Chain.

The investor had purchased 451 MKR in 2017 at around $23. On the 5th of September, they sold 251 tokens for $408,000 and still hold 200 MKR.

This comes as Maker continues to succumb to bearish pressure. On the 27th of August, which is when the rebrand went live, MKR was trading at around $2,175.

Since then, the token has dropped by over 24%, to trade at $1,628 at the time of writing.

MKR was trading at its lowest price since early January 2024. The token, following a bearish downward channel, was at risk of testing the lower trendline, which could see the bearish trend triggering further price declines.

The Moving Average Convergence Divergence (MACD) further supported this bearish thesis. The MACD was negative and below the signal line, an indication that bearish momentum was in play.

Moreover, the MACD histogram bars have flashed red, which further suggested that traders should brace for more price declines.

This bearish trend could persist due to a lack of buyers in the market. The Relative Strength Index (RSI) at 31 showed that sellers are dominating.

Additionally, the RSI line has moved below the signal line and was making lower lows.

The lack of buyers amid persistent selling pressure could also be seen in the exchange inflows data.

Per CryptoQuant, on the 2nd of September, barely a week after Maker’s rebrand to Sky, MKR exchange inflows reached the highest level since May.

AMBCrypto noted that MKR’s supply on exchanges increased amid low demand, as shown by the RSI. This strengthened the bearish case against MKR and the possibility of further dips.

The derivatives market also shows a gloomy outlook. According to Coinglass, Maker’s Open Interest dropped to $82M, the lowest level since July.

This indicated that traders were closing their existing positions because of uncertainty.

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