Uniswap (UNI) Falls Below $6 Amid Increased Selling Pressure
Whale Activity Triggers UNI’s Downtrend
The price of Uniswap’s native token, UNI, has declined by 2.85% over the last 24 hours, now standing at $5.81. This adds to its weekly losses, which have reached 20.45%. A significant transaction by a large investor (whale), involving the transfer of 2.25 million UNI (valued at $13.71 million) to Kraken, indicates a possible increase in selling activity.
Exchange Data Reflects Rising Sell-Offs
Recent blockchain data from Santiment points to heightened selling pressure on UNI, as evidenced by key indicators:
- Exchange Flow Balance Surge: UNI’s Exchange Flow Balance spiked from 428,920 to 2.23 million within a single day, suggesting more tokens are being moved for potential sales.
- Supply on Exchanges Growth: There was a 2.67% increase in UNI’s supply on exchanges, reinforcing the notion that investors are offloading their holdings.
- Declining Daily Active Addresses: Since mid-November, the number of active UNI addresses has been decreasing, signaling reduced investor interest in the token.
Technical Indicators Confirm Bearish Trend
Several technical indicators reinforce the current bearish sentiment surrounding UNI:
- Bollinger Bands: UNI is nearing its lower support level of $5.608, indicating a strong downward trend.
- Relative Strength Index (RSI): At 28.83, UNI is in the oversold territory, suggesting the possibility of a short-term price rebound.
- MACD (Moving Average Convergence Divergence): The MACD line is at -0.942, below the signal line (-0.858), confirming continued bearish momentum.
Key Price Levels to Watch
- Support Levels: The nearest support is at $5.608, with additional levels at $5.00 and $2.50 if the decline continues.
- Resistance Levels: UNI needs to break above $7.470 to regain bullish momentum.
Market Outlook and UNI’s Future
With sentiment remaining weak, investors are closely monitoring further whale transactions and potential recovery signals. Uniswap, a decentralized exchange protocol built on Ethereum, enables non-custodial trading of ERC-20 tokens. The platform launched its first version (Uniswap v1) in November 2018 at DevCon 4, followed by Uniswap v2 in May 2020.
Disclaimer
This content is intended for informational and educational purposes only and does not constitute financial, investment, or legal advice. While efforts are made to ensure accuracy, completeness, and reliability, we do not guarantee the information presented. Any financial decisions based on this content are made at your own risk. Always conduct thorough research and consult with a qualified financial advisor before making investment choices. Investing carries risks, and past performance is not indicative of future results. We are not responsible for any financial losses or damages resulting from your decisions.