In a surprising twist that has ignited conversations throughout the cryptocurrency world, Ethereum's co-founder, Vitalik Buterin, has orchestrated a significant transaction involving Maker (MKR) tokens. This move marks Buterin's first sale of MKR tokens in over two years, capturing the attention of investors and enthusiasts alike. The transaction, involving the sale of 500 MKR tokens with a value of approximately $581,000, was executed via CoWSwap and was reported by Data Nerd. However, the intrigue doesn't stop at the sale itself—details surrounding the transaction have fueled speculation and curiosity within the cryptocurrency community.
Butering Offloads His Maker Holdings
The intriguing aspect of Buterin’s latest MKR transaction lies not only in the rarity of Vitalik Buterin's token sale but also in the precise details of the exchange. A total of 350 ETH were received in exchange for the MKR tokens, and these 350 ETH were then transferred to the address 0x3f6. The specifics of these numbers, particularly the state difference of 353.402301773795924061, have ignited discussions and raised questions about the underlying motives and implications of Buterin's actions.
This move by Buterin occurred against the backdrop of an uptick in MKR token trading prices that emerged just days prior. The sudden surge in prices hinted at potential whale activities in the market, suggesting that substantial investments from influential players may have played a role in maintaining the MKR price above the 20-day Exponential Moving Average (EMA). This alone captured the attention of market analysts and enthusiasts alike, setting the stage for Vitalik Buterin's surprising transaction.
Beyond the individual intricacies of this transaction, the broader context of MakerDAO's recent developments and its impact on MKR token prices cannot be ignored. MakerDAO, a decentralized autonomous organization responsible for the creation of the MKR token, has witnessed notable improvements in its fundamentals as of late. Kunal Goel, a senior research analyst at Messari, pointed out that MakerDAO has achieved a return to profitability following a period of increased expenditure on incentives. This indicates a renewed sense of stability and financial health within the platform.
However, a pivotal catalyst behind the soaring MKR token prices appears to be the announcement made by the MakerDAO community on 28 August 2023. The announcement centered around the introduction of SubDAOs in South Korea, a strategic move aimed at unlocking the full potential of Decentralized Autonomous Organizations (DAOs). This bold approach has garnered immense interest and excitement within the cryptocurrency community, as it presents a novel framework for further engagement and participation in the world of decentralized finance.
MakerDAO’s Exit From Ethereum
In related news, Rune Christensen, one of the co-founders of MakerDAO, recently put forward a proposition. The proposal outlined plans to establish the upcoming native chain, referred to as "NewChain," by utilizing a fork of Solana's underlying codebase. This suggestion has ignited conversations within the cryptocurrency community, as it indicates a departure from MakerDAO's long standing association with the infrastructure of Ethereum.
Embarking on the NewChain Journey
The unveiling of MakerDAO's "Endgame" upgrade back in May marked the fifth and final phase of its evolutionary trajectory. A pivotal element of this upgrade involves the creation of NewChain, the native blockchain.
The complete implementation of NewChain is anticipated to take roughly three years. Moreover, this autonomous blockchain endeavors to redefine the Maker protocol while elevating its efficiency and functionality to new heights. Many in the cryptocurrency space speculate that Buterin’s latest MKR sale may be linked to the project’s departure from the Ethereum ecosystem.
Maker (MKR) Price Overview
The cryptocurrency price tracking website CoinStats indicated that MKR’s price stood at $1,126.29. This was after the altcoin suffered a 24-hour loss of 2.65%, which may be the result of Buterin’s recent selloff. In addition to losing strength against the Dollar, MKR was also outperformed by the market leader Bitcoin (BTC) during the past day of trading. At press time, 1 MKR was worth 0.04347277 BTC, which was a 3.04% decrease compared to what it was yesterday.
Price chart for MKR (Source: CoinStats)
Despite the drop in price throughout the past 24-hour cycle, MKR’s weekly performance remained in the green zone, and MKR was still up more than 8% for the week. The same can not be said for its monthly performance, however, which was deeply entrenched in negative territory at -13%.
Daily chart for MKR/USDT (Source: TradingView)
MKR’s price may breakout in the next few days given the fact that a symmetrical triangle chart pattern had formed on the cryptocurrency’s daily chart. Should this breakout be towards the upside, MKR’s price may attempt to flip the $1,280 support level into support before continuing to climb to the next major resistance level at $1,385 in the following few days.
Conversely, a bearish breakout could put the altcoin at risk of testing the critical support level at $1,066. Thereafter, continued sell pressure may drag the altcoin’s price to as low as $987 in the following week.
Technical indicators suggested that a bullish breakout may be more likely since a significant short-term technical flag was on the verge of being triggered. At press time, the 9-day EMA line was attempting to cross above the 20-day EMA line. Should these two technical indicators cross in the next 48 hours, then it will signal that short-term momentum has shifted in favor of bulls, and MKR’s price may rise in the following few days.
A confirmation of the bullish breakout will be when MKR’s price closes a daily candle above $1,1155. However, MKR failing to close a daily candle above this benchmark within the next 72 hours may result in a sharp price drop for the altcoin.
Ethereum (ETH) Price Overview
Meanwhile, CoinStats indicated that the leading altcoin was changing hands at $1,634.11. This was after ETH’s price had risen 0.02% throughout the past 24 hours. This slight positive daily performance was, however, not enough to bring the cryptocurrency’s weekly performance out of the red zone. Consequently, ETH’s price was still down 1.02% for the week.
Price chart for ETH (Source: CoinStats)
Furthermore, ETH weakened 0.39% against the market leader Bitcoin (BTC) over the past 24 hours as well. As a result, 1 ETH was estimated to be worth 0.06306307 BTC at press time.
Daily chart for ETH/USDT (Source: TradingView)
From a technical perspective, ETH’s price may be at risk of retesting the crucial support level at $1,580.96 in the coming week. This was after a negative price channel had formed on the altcoin’s daily chart over the past few days - a period that saw ETH’s price print lower highs and lower lows.
ETH’s price had successfully broken out of the negative price channel on 29 August 2023, and continued to trade above the channel for the next 48 hours. However, it had succumbed to overwhelming sell pressure which ultimately resulted in the altcoin plummeting back into the descending channel. Moreover, technical indicators suggested that short and medium term momentum was in favor of sellers.
At press time, the 9-day EMA line was positioned below the 20-day EMA line. Furthermore, both of these technical indicators were positioned below the 50-day EMA line as well. If this bearish momentum continues, ETH’s price may retest the crucial mark at $1,580.96 soon.
On the other hand, if ETH is able to close a daily candle above $1,690 within the next 48 hours, then the bearish thesis will be invalidated. In this scenario, the leading altcoin’s price may attempt to challenge the next major threshold at $1,775.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.