The cryptocurrency market experienced a notable rebound mid-week, with Bitcoin climbing from $63,424 to $68,252. Accompanying this surge, the Uniswap price analysis shows a quick reversal from multi-month support at $7. This bullish turnaround uplifted the asset by 10% to trade at $7.734, while the market cap jumped to $4.63 Billion. However, concerns of a potential correction have emerged following a substantial deposit of UNI tokens by a wallet associated with the Uniswap team.
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Major Support at Risk as Uniswap Team Wallet Transfers $9.15M to Coinbase
Recent data from Spot On Chain reveals a notable transaction involving a wallet associated with the Uniswap team. The wallet deposited 1.19 million UNI tokens, worth approximately $9.15 million, into Coinbase earlier today.
This #Uniswap team-linked wallet deposited 1.19M $UNI ($9.15M) to #Coinbase 2 hours ago.
The wallet received 9M $UNI from @Uniswap in 2020 and has deposited 7.17M $UNI ($58.5M) to Coinbase at ~$8.16 since July 4, 2024.
The remaining 1.83M $UNI ($14M) may be deposited away soon.… https://t.co/9Ve2A3GQl4 pic.twitter.com/y5i3qdpkKj
— Spot On Chain (@spotonchain) July 27, 2024
This wallet, which initially received 9 million UNI tokens from Uniswap in 2020, has been actively trading. Since July 4, 2024, it has offloaded 7.17 million UNI, amounting to $58.5 million at an average price of $8.16 per token. This activity leaves a remaining balance of 1.83 million UNI, valued at around $14 million, which might also be liquidated soon.
While the UNI price finds support at a major accumulation level, this heavy transaction raises concerns about further downfall. However, a closer look at the technicals suggests that UNI is at strong support and could trigger a bounce soon.
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Uniswap Price Analysis: Triangle Formation and RSI Suggest Uptrend
The Uniswap price analysis in the daily chart shows that this asset is strictly trading within two converging trendlines. The lower trendline has been intact since October 23, providing dynamic support, while the upper resistance trendline, established on May 24, has formed a triangle pattern.
In theory, this chart setup is known to lead to a sideways for the prevailing trendline to regain momentum before the next directional move. On July 25th, the UNI showed another reversal from the lower trend, signaling a bull cycle within the triangle.
The daily RSI slope approaching the midline (50%) accentuates the improving market sentiment. If history repeats, the Uniswap price showed change triangle resistance at $9.25, registering a potential bounce of 18.25%.
Uniswap Price Analysis| Tradingview
On the contrary, the heavy deposit of the UNI token by the Uniswap team hints that this time could be different. A recent death crossover between the 50D and 200D Exponential Moving Average may accelerate the bearish momentum and asset in triangle pattern breakdown.
A bearish break below the lower trendline will invalidate the bullish thesis and bolster sellers to drive a correction toward the $5 psychological level.
Frequently Asked Questions (FAQs)
UNI is the native token of Uniswap, a decentralized finance protocol that facilitates automated trading of decentralized finance (DeFi) tokens.
Large transfers of UNI tokens to exchanges can lead to price fluctuations. If market participants perceive these transfers as potential sell-offs, it could lead to a decrease in price due to anticipated increased supply on the market.
The triangle pattern hints a major accumulation trend for UNI token. A bullish breakout from triangle resistance may signals a early sign of trend reversal.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.