Uniswap [UNI] is teetering on the brink of a critical juncture. The token of the decentralized exchange is swiftly nearing a highly important trendline support level following a 10% drop in price as indicated on the daily chart.
With an uptick in whale activity and a reduction in selling pressure, the cryptocurrency community is awaiting eagerly. Can this support level serve as a springboard for UNI to reclaim $10 and beyond?
Whales Drive UNI’s Movement as Retail Participation Wanes
The recent on-chain data paints a fascinating picture of how the market is responding to UNI.
At the time of writing, there has been a 74.73% decrease in the total coins sent to exchanges over the past 24 hours, signaling a notable drop in retail involvement.
Nevertheless, the dwindling retail transactions are gradually being offset by a 44% spike in high-volume trades, suggesting that the whales are positioning themselves for long-term investments.
An increase in whale activity often foreshadows significant price movements. With affluent investors amassing UNI near crucial support levels, their behavior reflects confidence in a potential turnaround.
Simultaneously, the easing of selling pressure contributes to the positive outlook. With fewer sellers in the market, conditions are becoming favorable for buyers to assert dominance.
A Pivotal Moment for Uniswap
All eyes are currently on UNI’s trendline support, a pivotal level known to trigger price rebounds historically. Upholding this support could spark increased buying interest and push UNI closer to the psychologically significant $10 threshold.
Conversely, surpassing this barrier could unleash further upward momentum.