Uniswap [UNI] experienced a significant increase in price volatility over the past 24 hours, with its value fluctuating between $8.83 and $9.63. This surge in volatility coincided with a rise in large-scale transactions by major players.
According to data from IntoTheBlock, the volume of transactions exceeding $100,000 spiked from 3.05 million to 21.39 million within a day, marking a surge of over 500%.
Given that whales hold 51% of UNI’s circulating supply, compared to retail investors with only 16%, any uptick in whale activity is likely to impact market volatility.
Is Uniswap Ready for a 30% Upward Movement?
At current press time, UNI is trading at $8.93. The recent price surge paused due to a lack of buying interest after reaching a four-month peak of $9.63.
An analysis of the one-day trading chart revealed a notable uptick in buying pressure, with the Relative Strength Index (RSI) surging to 62, suggesting strong bullish momentum driven by buyers.
Despite a slight price pullback, the Moving Average Convergence Divergence (MACD) indicator indicated that bulls were still in charge, as the MACD line turned positive along with the histogram bars.
To sustain its upward trajectory, Uniswap will require continued support from buyers to potentially trigger a 30% surge towards the next resistance level at $11.60, as per the 1.618 Fibonacci level.
However, a lack of fresh buying momentum could weaken the uptrend, with a decisive drop below the $7.34 support level likely fueling a downtrend.
Profit-Taking Poses Challenges
Sellers are currently in a position to reignite bearish trends. Data from CryptoQuant revealed that over the last two days, traders moved more than 9 million UNI tokens to exchanges in preparation for potential sell-offs.
Such token inflows to exchanges typically signal upcoming sell orders, potentially capping further price gains for UNI.
Nevertheless, an uptick in deposits to derivative exchanges could add volatility if traders open or increase their UNI positions.
In the derivative market, a significant number of short positions faced forced liquidations recently. Coinglass data indicated that within a brief period, over $2.8 million worth of UNI short positions got liquidated.
Forced liquidations from short positions often induce buying activity, as short sellers are compelled by buyers to close their positions. If the prevailing positive sentiment regarding UNI incites additional forced liquidations, the altcoin could potentially trend higher.