The Dominance of Whales and UNI Token’s Market Aspiration to Reach $27
Uniswap’s UNI was valued at $17.47, as of now, showing a decrease of more than 6% within 24 hours. Nevertheless, UNI has experienced a substantial 40% growth since the beginning of the month. The market capitalization has also surged from $7.81 billion to $10.48 billion.
Optimism looms among Uniswap’s major holders, with addresses possessing between one million and ten million UNI tokens accumulating an additional 1.68 million UNI tokens in just four days.
Among these whale investors, Galaxy Digital has stood out. Reportedly, this digital asset management firm withdrew 1.07 million UNI from exchanges on December 12th, during a period where interest in DeFi tokens was escalating.
This surge in whale activity aligns with positive signals on Uniswap’s weekly chart, hinting at a potential bullish reversal following the recent downturn.
Evaluation of UNI’s Price
The weekly chart of Uniswap illustrates a current bullish trend after breaking through the neckline of a rounding bottom pattern, signaling a strengthening of buyer positions.
Indicators like the Moving Average Convergence Divergence (MACD) exhibit bullish traits, visible through the presence of green histogram bars and the MACD line surpassing the signal line.
Moreover, the Average Directional Index (ADX) demonstrates a northward trend, indicating the robustness of the ongoing uptrend.
If UNI successfully bounces back from the recent pullback and retains its bullish momentum, the next price target stands at $27.41, aligned with the 1.618 Fibonacci level.
Surge in Exchange Supply Ratio
Despite the whale accumulations and optimistic trends on Uniswap’s weekly chart, the surge in the exchange supply ratio to a seven-day peak signifies persistent sell-side pressure.
CryptoQuant reports the ratio reaching 0.0025, reflecting a rise in UNI’s supply on exchanges, potentially leading to bearish developments if buying activities weaken.
One factor contributing to this escalating ratio could be profit-taking behavior, indicated by IntoTheBlock’s revelation that 62% of UNI wallets are currently profitable, a figure unseen since 2021. Consequently, traders in profitable positions might choose to sell, intending to lock in their gains.
Insights from Derivatives Data
An analysis of Uniswap’s derivative market data unveils a significant increase in long liquidations post the recent decline. The Long/Short ratio dropping to 0.959 implies a marginally higher presence of short sellers compared to long buyers.
Although open interest dipped by 2% during the price fall, it hovers at elevated levels of $340M, signaling sustained market engagement.
The escalated volumes in derivative trading corroborate the enduring speculative enthusiasm surrounding UNI, suggesting potential room for a revival despite the recent price correction.