- Uniswap whales found themselves selling a significant portion of their tokens
- Network growth for UNI has slowed significantly in recent days
Uniswap [UNI], one of the largest DEXs (decentralized exchanges) in the crypto sector, witnessed big gains due to the bullish momentum around UNI as the year started. Despite how well the DEX has done lately, interest in UNI seemed to be waning at the time of writing.
Whales swim away
According to Lookonchain, a few hours ago a large whale deposited 561,782 UNI, worth approximately $4.38 million, into Binance. This deposit followed a period of accumulation over the past year and represented the Whale’s first sale of UNI at that time.
Interestingly, the whale still owns a significant amount of UNI, with a remaining balance of 2 million UNI, worth $15.48 million.
An analysis by AMBCrypto, based on Santiment’s data, suggested that the percentage of large addresses with UNI has also fallen. This implied that the sale of this whale could be part of a larger trend of declining interest in whales in UNI.
Source: Santiment
From May 26 to June 17, a triple bottom pattern flashed across UNI’s price charts. Following this, the token’s price dropped significantly, highlighting lower lows and lower highs. This indicated a bearish trend. For UNI to recover in the future, it would have to retest the $9,310 level several times before a reversal could be possible.
The RSI (Relative Strength Index) for UNI also fell to 37.94 in recent days, indicating that bullish momentum around UNI was declining.
Moreover, the CMF (Chaikin Money Flow) for UNI also fell on the charts, implying that the flow of money into the token was low.
Source: trading view
What does data say about the chain?
Finally, UNI’s network growth also dropped significantly, indicating that new addresses had lost interest in the token.
Moreover, the speed of the altcoin has also decreased significantly in recent days.
Source: Santiment
The recent Uniswap v4 update could be useful for UNI, with the potential to drive up its price. The main feature behind this update is a revolutionary concept called hooks.
Is your portfolio green? View the UNI Profit Calculator
These hooks are essentially small snippets of code designed to run at specific points in a pool’s lifecycle. They can be triggered at pool creation, whenever liquidity providers (LPs) add or remove their positions from the pool, or even before and after a swap takes place.