The mixed signals seen over the past few weeks on the charts have left many investors perplexed, especially Maker holders, given the recent movement of the altcoin. Nevertheless, not all are sitting quietly as some have decided to find ways to minimize the impact of the unprecedented market on them.
Maker makes it harder for investors
After reversing year-to-date losses with a week-long rally on March 4, Maker continued to reverse them with a 16.29% drop in the next 48 hours. The downtrend that has since ensued is in effect even to this day.
According to the Squeeze Momentum indicator, after the coin rallied on the release of the squeeze, MKR started to lose its uptrend during the current active squeeze and as a result today marked the first sign of real decline (red bar).
However, over the past two weeks, long-term (LTH) holders have suddenly become very active. Just yesterday, in one instance, more than 5.49 million days have been consumed after an additional 5 million days earlier this week.
However, the only good thing is that whether the supply of these LTHs is sold or not, it is not reflected negatively on the coin since the total supply of MKR on the exchanges is only decreasing. In other words, to buy is to observe the preference over the sale.
Although it is understandable that they move the MKR they hold since the altcoin has a consistently low value and any effort to make it positive has failed over the last three months, and naturally that plays with confidence investors.
But the incentive to invest may continue to drive people into the altcoin, as Maker’s network-wide offering has been profitable since yesterday. Even though the spike is small, it is still significant as it is the biggest profit Maker has seen in 5 months.
As a result, the asset’s risk-adjusted returns are also at their highest level in five months. However, investors should exercise caution, as the annual return on the asset is still negative. Even though it is better than Bitcoin and Cardano, those investing in Maker should still beware.