CoinEfficiency

Nexo Withdraws 50% of MakerDAO's WBTC Holdings: Price Impact and Market Analysis

Nexo has withdrawn nearly 50% of the Wrapped Bitcoin (WBTC) held in MakerDAO, reducing the protocol's WBTC holdings to a 2022 low. This move has impacted NEXO's price, which dropped 3.23% in the last 24 hours. Technical indicators suggest a potential bearish trend for NEXO, with the 9 EMA below the 20 EMA and the RSI crossing below its SMA.
Published on 2022-10-01

Nexo Withdraws Nearly 50% of MakerDAO's WBTC Holdings

Nexo has withdrawn approximately 50% of the Wrapped Bitcoin (WBTC) held in MakerDAO, according to blockchain analytics firm Santiment. This significant withdrawal has reduced MakerDAO's WBTC holdings to a 2022 low, leaving around $120 million in Collateralized Debt Positions (CDPs).

NEXO Price Drops Amid Market Weakness

The price of NEXO has declined by 3.23% over the past 24 hours, falling to $0.9128. The cryptocurrency has also weakened against Bitcoin (BTC) and Ethereum (ETH), with declines of 2.46% and 2.78%, respectively. NEXO currently ranks 71st by market capitalization on CoinMarketCap, with a market cap of $511 million. Its 24-hour trading volume has dropped 44.39% to $8.79 million.

Technical Indicators Signal Bearish Trends

The NEXO/USDT daily chart suggests the cryptocurrency may be entering a short- to medium-term bearish cycle. Key technical indicators include:

  • The 9 Exponential Moving Average (EMA) line positioned below the 20 EMA line, indicating bearish momentum.
  • The Relative Strength Index (RSI) crossing below its SMA, a bearish signal.

Market Implications and Caution

While Nexo's decision to reduce its WBTC holdings in MakerDAO may reflect strategic portfolio adjustments, the broader market implications remain uncertain. Investors should exercise caution and conduct thorough research before making trading decisions.

Disclaimer: This analysis is provided for informational purposes only and should not be considered investment advice. Readers are encouraged to do their own research and consult with financial advisors before taking any investment action.

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