Uniswap [UNI] was witnessing a surge in activity from large investors who were quietly amassing the token. Can this lead UNI to outperform other cryptocurrencies in the upcoming weeks?
Significant Move by Uniswap Whale
An intriguing update on X (previously known as Twitter) by blockchain tracker Spot On Chain shed light on a DeFi whale who invested $4 million USDC to acquire 437,000 UNI tokens.
The whale, an early adopter of UNI, now holds 2.248 million UNI tokens valued at $20.8 million, with unrealized profits of $5 million (+31.5%), purchased at an average price of $7.06.
Following this substantial purchase, Uniswap’s price bounced back from earlier losses, registering a 0.08% uptick to reach $9.17, as of the latest update.
Moreover, trading volume surged by 38.85% in the past 24 hours, indicating heightened interest and involvement from traders and investors, likely influenced by the actions of this significant player.
Decrease in Uniswap Addresses Indicates…
Uniswap’s Daily Active Addresses (DAA) hovered between 6,000 and 10,000 from March to November.
A sharp increase on November 5th drove the active addresses above 11,000, indicating increased user activity during that period.
Yet, post this peak, the number of active addresses has gradually declined, stabilizing between 8,000 and 9,000.
This decline suggests a potential slowdown in speculative activity or diminished interest in short-term trading.
Despite the decrease, sustained activity levels imply ongoing support from core users and long-term participants, aligning with the rise in whale accumulation and consistent trading volumes.
The decline also hints at a probable consolidation phase, where reduced participation might pave the way for future growth or significant market shifts.
UNI Aims for $12 with Buyers Defending THIS Key Level of Support
The four-hour UNI chart reveals the formation of a bullish pattern around crucial support levels.
Uniswap’s price currently hovers slightly above the 50 EMA at $8.84, the 100 EMA at $8.55, and the 200 EMA at $8.12, proving to be robust support areas.
This positioning indicates that buyers are actively safeguarding these levels, maintaining the uptrend’s momentum.
The Accumulation/Distribution Line stands at 54.623M, underscoring consistent accumulation as traders expand their positions in anticipation of higher price levels.
Meanwhile, the Money Flow Index (MFI) sits at a neutral 50.19, suggesting a balance between buying and selling pressures, with potential for further upward movement.
An anticipated surge to the target of $12.00 represents a 33% gain from current levels.
If the price holds above the 50 EMA support and breaks through the $10 resistance, the bullish trend could propel Uniswap towards this objective.
However, a drop below $8.12 could nullify the bullish setup and trigger additional downside movement.