Maker (MKR) price has experienced a significant increase in the past 24 hours, breaking through a price level that had been restricting bullish activity since the market downturn in mid-August. The price of MKR reached a high of $1,186 before retracing some of its gains.

According to on-chain data, whales and sharks have been accumulating MKR since early July, with over 61.5k MKR being acquired. This accumulation trend, which amounted to over $70 million worth of the cryptocurrency, could potentially drive MKR price to new highs in September.

Holders with 10k-100k MKR tokens bought 61,500 of the governance token between July 9 and August 31. These holders, with holdings ranging from $11.6k to $11.6 million, played a significant role in driving the price of MKR above $1,160.

What does this mean for MKR price?

This accumulation suggests that there could be further buying pressure, potentially propelling MKR price beyond $1,200 and potentially reaching the year-to-date highs of around $1,350. However, there is also the possibility of added profit-taking.

“Their holdings will continue to correlate with future price movement,” analysts at Santiment noted.

Other Catalysts for MKR Price

One of the factors contributing to the upward movement of MKR price is Maker’s expansion into the South Korean market. This expansion occurred even as the overall crypto market experienced a retreat after the spike fueled by Grayscale earlier this week.

In addition to this, recent court rulings against the U.S. Securities and Exchange Commission (SEC) have increased the likelihood of a spot exchange-traded fund (ETF) being introduced to the U.S. market. This development is expected to have a positive impact on Bitcoin and altcoins, including MKR.

FAQs

What is Maker (MKR)?

Maker is a decentralized autonomous organization (DAO) and its governance token, MKR, is used to make decisions on the platform. It operates on the Ethereum blockchain and is designed to stabilize the value of its stablecoin, DAI.

How does accumulation affect MKR price?

Accumulation refers to the process of acquiring a significant amount of a cryptocurrency over a period of time. If there is strong accumulation of MKR, it suggests that there is increasing demand for the token, which can potentially drive up its price.

Is MKR a good investment?

As with any investment, it is important to conduct thorough research and consider various factors before investing in MKR or any other cryptocurrency. While MKR has shown positive price movements recently, it is important to assess the market conditions and potential risks before making any investment decisions.

Where can I buy MKR?

MKR can be purchased on various cryptocurrency exchanges, including Binance, Coinbase, and Kraken.

Is MKR subject to volatility?

Yes, like many cryptocurrencies, MKR is subject to volatility. Its price can experience significant fluctuations in a short period of time due to various factors such as market conditions, investor sentiment, and regulatory developments.