Uniswap – Can Whale Demand Drive Uni Price Higher
Journalist
- Buying pressure on UNI remained high last week.
- Some market indicators have turned negative for the token.
The price of Uniswap [UNI]experienced a massive price drop as its weekly chart was in red. But in the last 24 hours, things started to change as we saw a trend reversal. However, this is not a guarantee of another bull rally as there are some warning signs.
Uniswap recovers
The last week was a bit disastrous for UNI, because while most cryptos saw a rally, Uniswap’s value fell.
According to CoinMarketCapUNI is down over 7% in the last seven days. Meanwhile, a whale took advantage of the opportunity to accumulate more UNI while its price was low.
Lookonchain recently posted a tweetrevealing that a whale withdrew 86,467 UNI, worth $1.23 million, from Binance. Shortly after the purchase, UNI rice gained bullish momentum as it recorded a recovery.
In the last 24 hours alone, the price of UNI has increased by more than 3.5%. At the time of writing, UNI was trading at $14.32 and had a market cap of over $8.5 billion.
An analysis of Glassnode’s data revealed that the chances of a sustained uptrend are high. Uniswap’s Network Value to Transactions (NVT) ratio has recently fallen.
When the ratio decreases, it indicates that an asset is undervalued, which indicates an increase in price.
Source: Glassnode
These are the warning signs
It was interesting to see investors buying Uniswap. Analysis of Santiment’s data found that UNI’s supply on exchanges was decreasing while off-exchange supply was increasing, meaning buying pressure was high.
However, the big players in the game, whales, actually sold their holdings as the supply of UNI held by top addresses declined.
Source: Santiment
A possible reason for this was revealed when we took a look at Hyblock Capital’s data. We found that a significant amount of UNI will be liquidated when its value reaches the $14.6 mark.
A surge in liquidations means high selling pressure, which could put an end to the token’s bull rally in the coming days.
Source: Hyblock Capital
How much is 1,10,100 UNIs worth today
To check what you can expect from UNI, we analyzed the daily chart of Uniswap. We have noticed that the price of UNI is entering a less volatile zone, as shown by the Bollinger Bands.
Its MACD also showed a bearish crossover, further suggesting that the bullish rally may end soon. Nevertheless, the Money Flow Index (MFI) recorded an increase, which was a bullish development.
Source: TradingView
