Uniswap [UNI] investors could be in for a challenging period amid the current market instability. The token has reached a critical level during the recent market downturn, setting the stage for a decisive moment.
As of now, UNI has seen a 2.25% price decline over the past 24 hours, hovering around the $9.60 mark.
Despite the drop, there has been significant engagement from traders and investors, leading to a 70% surge in trading volume.
Investors Have Withdrawn $3.10 Million in UNI Holdings
Information indicates that the uptick in engagement seems to be in favor of the asset, with market participants accumulating and taking long positions, as per insights from the on-chain analytics company Coinglass.
Data on Spot Inflow/Outflow highlights that various crypto platforms have been experiencing continuous outflows, signaling potential accumulation of tokens.
In the last 2 days, exchanges have registered an outflow of UNI tokens worth $3.10 million at the time of reporting.
The move of tokens out of exchanges is viewed positively by experts and investors, who believe it could lead to buying pressure and further upward momentum.
Long Bets Worth $5.4 Million
Alongside the optimism from long-term holders, short-term traders are also aligning with this pattern, as per Coinglass data.
Currently, traders with long positions dominate the market, with an over-leveraged position at the $9.57 level totaling $5.4 million.
On the flip side, the $9.73 level has seen an accumulation of $1.15 million in short positions, indicating a significant presence of traders betting against the asset.
These over-leveraged positions of long and short traders can reveal the predominant sentiment and the side that is more susceptible to liquidation in case of price fluctuations.
Investors and traders are making bullish moves, driven by not only the recent price movements but also the evolving market conditions.
Analysis of Uniswap Price Action and Critical Levels
As per CryptoCrypto’s technical analysis, UNI is forming an ascending triangle pattern and currently receiving support from a trendline.
The consistent support from market participants indicates that UNI might sustain the ascending trendline support and remain above the $9.55 mark.
If this scenario plays out, there is a high probability of the asset surging by 30% to hit the $12.60 level.
However, if UNI fails to maintain this level and closes a four-hour candle below $9.45, a potential 15% decline could be on the horizon, pushing the price down to $8.15 in the coming days.