During the recent bullish market trend, Uniswap [UNI] experienced significant interest from whales who were quietly accumulating the token. Will this accumulation lead to UNI outperforming other tokens in the upcoming period?
Massive Purchase by the Uniswap Whale
A recent post on X (previously known as Twitter) by blockchain tracker Spot On Chain brought attention to a DeFi whale who invested $4 million USDC to acquire 437,000 UNI tokens.
The whale, an early UNI holder, now holds a total of 2.248 million UNI tokens valued at $20.8 million, with unrealized profits of $5 million (+31.5%). The tokens were purchased at an average price of $7.06.
Following this hefty acquisition, the price of Uniswap has bounced back from previous losses, recording a 0.08% increase to reach $9.17 at the current time.
Moreover, trading volume witnessed a remarkable surge of 38.85% in the last 24 hours, indicating growing interest and participation from traders and investors, likely influenced by the whale’s activity.
Decline in Uniswap Addresses Indicates…
The number of Uniswap’s Daily Active Addresses (DAA) fluctuated between 6,000 and 10,000 from March to November.
A notable spike on November 5th saw active addresses surpass 11,000, indicating heightened user interaction during that period.
However, post this peak, the active addresses have gradually reduced, stabilizing between 8,000 and 9,000.
This decline may suggest a decrease in speculative behavior or a waning interest in short-term trading.
Despite the drop, sustained activity levels imply continued support from core users and long-term participants, in line with increased whale accumulation and consistent trading volumes.
The decline also hints at a potential consolidation phase, where reduced participation could pave the way for renewed growth or significant market shifts.
UNI Aims for $12 as Buyers Defend Key Support Level
The four-hour UNI chart reveals a bullish formation around crucial support levels.
Uniswap’s price is hovering slightly above the 50 EMA of $8.84, the 100 EMA at $8.55, and the 200 EMA at $8.12, all serving as robust support zones.
This positioning indicates active defense of these levels by buyers, sustaining the uptrend.
The Accumulation/Distribution Line stands at 54.623M, showcasing steady accumulation as traders increase their positions in anticipation of higher prices.
Meanwhile, the Money Flow Index (MFI) sits neutral at 50.19, indicating a balance between buying and selling pressure, with the potential for further upside momentum.
An upsurge towards the projected target of $12.00 would signify a 33% rise from the current levels.
If the price maintains support above the 50 EMA and breaches the $10 resistance level, the bullish trend could push Uniswap closer to its target.
Nevertheless, a drop below $8.12 could invalidate the bullish scenario, leading to potential further decline.