Uniswap Price at Risk: Rare Pattern Emerges Amid Whale Buying Surge
Uniswap’s Price Trends Indicate Potential Pullback Amidst Growing Exchange Supply
Uniswap Price Recovery and Market Valuation
Uniswap’s token, UNI, has experienced a notable recovery over the last three months, climbing to $7.5485 on July 8, representing a 67% increase from its April lows. This surge has brought its market capitalization to approximately $4.7 billion.
- Uniswap Price Recovery and Market Valuation
- Rising Supply on Exchanges Signals Caution
- Unichain’s Growth and Transaction Volume
- DeFi Growth and Total Value Locked
- Increasing Whale Activity and Investor Interest
- Uniswap Price Chart Analysis
- Current Price Trends and Technical Indicators
- Bearish Signals and Potential Downside
- Key Support Levels to Monitor
Rising Supply on Exchanges Signals Caution
Recent on-chain analytics reveal that the supply of UNI on exchanges has surged to 85.6 million, marking the highest level since June 5. This figure has risen from 82.1 million last month and is significantly up from a year-to-date low of 69.27 million. An increase in tokens held on exchanges often indicates that investors may be preparing to sell, which raises concerns about potential downward pressure on the price.
Unichain’s Growth and Transaction Volume
On a positive note, Unichain, the layer-2 network launched in March, is gaining momentum. In the past 24 hours, its protocols have processed transactions exceeding $366 million, contributing to a remarkable 30-day transaction volume of $6.23 billion, positioning it as the third-largest layer-2 decentralized exchange (DEX) network.
DeFi Growth and Total Value Locked
Unichain’s total value locked (TVL) in decentralized finance (DeFi) has also seen significant growth, increasing by over 28% in the last month to surpass $1.17 billion. This figure notably eclipses that of Cardano (ADA), which has less than $350 million in assets.
Increasing Whale Activity and Investor Interest
The past month has seen a substantial rise in whale holdings of UNI, which have surged by 58% to reach 5.69 million. Notably, public figure investors have ramped up their holdings by an impressive 1,162%, now totaling 176,748 UNI. Additionally, the top 100 addresses have increased their balances by 16%, amassing 812 million UNI.
Uniswap Price Chart Analysis
Current Price Trends and Technical Indicators
The daily price chart indicates that UNI has fallen from its peak of $19.44 earlier this year to its current value of $7.53. It remains below the critical 23.6% Fibonacci retracement level of $8.10.
Bearish Signals and Potential Downside
The MACD indicator is currently showing signs of bearish divergence, while the price has formed a rising wedge pattern, which is typically associated with bearish outcomes. As this pattern approaches its apex, the likelihood of a downward breakout increases.
Key Support Levels to Monitor
Should a pullback occur, the next significant support level to watch will be $4.60, which represents a potential decline of approximately 40% from the current price.
