Maker (MKR), the native token of the MakerDAO decentralized finance (DeFi) platform, has been facing significant downward pressure in recent days. As of early March 2025, MKR’s price saw a steep 10% drop, bringing its value to approximately $1,473.92. This decline has raised concerns about whether MKR could continue to dip, possibly reaching a psychological support level around $1,345.

Despite the recent downturn, various factors, including on-chain metrics and market activity, suggest the potential for a reversal. Let’s examine the key elements influencing MKR’s future direction.

The $1,500 Psychological Support Level

One of the most important levels to watch for MKR is the $1,500 mark. This price point is seen as a critical support zone, as many traders view it as a psychological threshold. The price has been testing this level, and its ability to hold above it will be crucial for determining the next steps.

If MKR fails to maintain its position above $1,500, the next significant support zone is at $1,345. Such a decline could reflect the continued dominance of sellers in the market. On the other hand, if MKR holds the $1,500 level, it could indicate potential for a price reversal, providing the foundation for a recovery.

Surge in Trading Volume

Despite the price decline, MKR’s trading volume has notably increased. In just 24 hours, trading volume surged by 54%, reaching $288 million. This increase indicates growing market interest and activity, which may point to traders positioning themselves for a potential reversal.

In situations like this, rising trading volume during a price decline can often signal that the market is reaching a point where the trend could shift. If buying pressure continues to rise, MKR’s price could stabilize and move higher. However, without consistent buying interest, the risk of further declines remains.

Whale Activity and Accumulation

Another critical factor to consider is the activity of large traders, or whales, who have been making notable moves in MKR’s market. Recent on-chain data reveals that whale transactions have increased by more than 10% over the past 24 hours, signaling that larger players are actively involved in the market.

For example, a whale wallet, “0xB4eA,” recently purchased 3,334 MKR for approximately $4.89 million. Additionally, another wallet, “0x1d1d,” withdrew 900 MKR, worth about $1.33 million, from Binance. These large transactions suggest that whales may be accumulating MKR, potentially anticipating a rebound in the price.

Such whale movements can play a significant role in price recovery, as their actions often have an outsized impact on the market. If this trend of accumulation continues, it could provide the necessary support for MKR to hold above the critical $1,500 price level.

Network Growth as a Positive Indicator

MKR’s network growth also offers a positive long-term signal. According to data from IntoTheBlock, MKR’s network growth rate has recently risen by 1.29%. This uptick suggests that more participants are engaging with the Maker ecosystem, which could drive demand for MKR in the future.

Network growth is often seen as a sign of a project’s expanding influence and adoption. If the trend continues, it could help bolster MKR’s value over time, potentially offsetting the bearish price action in the short term.

What’s Next for Maker (MKR)?

The battle at the $1,500 support level will be critical for MKR’s future price movement. If the price remains above this level, there could be enough buying momentum to trigger a recovery. However, a failure to hold $1,500 may set the stage for further declines, with $1,345 being the next potential support zone.

As market conditions continue to evolve, MKR’s price action, whale activity, and network growth will be essential factors to monitor. Investors should stay alert to any changes in these metrics, as they could provide important clues about the token’s next move.

In conclusion, MKR’s price could either reverse if buying interest picks up or continue to dip if selling pressure remains dominant. The next few days will be crucial in determining which direction the token will take.