Brief Analysis——MKR
Maker is a peer-to-contract lending platform that enables over-collateralized loans by locking Ether in a smart contract and minting Dai, a stablecoin pegged to the US dollar. As MakerDao's token, the unit price of MKR has always remained at a high level. You can know from on-chain detectives that MKR is favored by whales as a trading token. MKR has risen since June, unlike other tokens that have risen rapidly and then fallen rapidly. The rise of MKR is stable.
MakerDao raised the Dai deposit rate starting in July, with the maximum interest rate being 8%. As a low-risk rate, whales and large entities are excited to exchange their tokens for DAI to receive this rate. This may be the main reason for the current rise. Although the deposit rate is currently reduced to 5%, but because of the low-volatility secondary market, a lot of DAI continues to be stored in vaults. On the other hand, MakerDao focuses on Real World Assets in the second half of 2023, which uses traditional short-term U.S. debt as the underlying asset. Affected by the Federal Reserve's hawkish interest rate hikes, U.S. bond yields have generally risen, with short-term interest rates above 5%. This is a good direction for the cryptocurrency market.
Back to our technical analysis, we took a screenshot of the candles chart from June. The purple rectangles in the WTA indicator area shows the position where the whale increased significantly three times, and the black rectangles in the candle chart area shows the change of the candle when the whale disappears. In Phase 1, whales flowed into the transaction, and MKR rose as expected. But after the whale disappeared, there were no destructive candles, such as long upper pin-bar and long red candles. This is important for WTA indicator usage. The V-reversal did not occur, and MKR began a smooth callback. This means that most whales do not choose to leave the market directly, and the remaining funds are enough to keep the rise without being destroyed. Similarly, in the Phase 2 and 3, although the positions are different, there are no destructive candles after the blue column disappears, and the bullish trend continues.
There is still no long red candle or long upper pin-bar. So the rise may not be over.
MakerDao raised the Dai deposit rate starting in July, with the maximum interest rate being 8%. As a low-risk rate, whales and large entities are excited to exchange their tokens for DAI to receive this rate. This may be the main reason for the current rise. Although the deposit rate is currently reduced to 5%, but because of the low-volatility secondary market, a lot of DAI continues to be stored in vaults. On the other hand, MakerDao focuses on Real World Assets in the second half of 2023, which uses traditional short-term U.S. debt as the underlying asset. Affected by the Federal Reserve's hawkish interest rate hikes, U.S. bond yields have generally risen, with short-term interest rates above 5%. This is a good direction for the cryptocurrency market.
Back to our technical analysis, we took a screenshot of the candles chart from June. The purple rectangles in the WTA indicator area shows the position where the whale increased significantly three times, and the black rectangles in the candle chart area shows the change of the candle when the whale disappears. In Phase 1, whales flowed into the transaction, and MKR rose as expected. But after the whale disappeared, there were no destructive candles, such as long upper pin-bar and long red candles. This is important for WTA indicator usage. The V-reversal did not occur, and MKR began a smooth callback. This means that most whales do not choose to leave the market directly, and the remaining funds are enough to keep the rise without being destroyed. Similarly, in the Phase 2 and 3, although the positions are different, there are no destructive candles after the blue column disappears, and the bullish trend continues.
There is still no long red candle or long upper pin-bar. So the rise may not be over.
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