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- Uniswap whales have amassed more than 1.68 million tokens this week, amid rising interest in DeFi tokens.
- UNI’s weekly chart also shows bullish signals that could push UNI towards $27 if buying activity strengthens.
Uniswap [UNI] was trading at $17.47 at the time of writing, having fallen more than 6% in 24 hours. Despite this dip, UNI is still up almost 40% month over month. The market capitalization has also increased to $10.48 billion from $7.81 billion at the beginning of the month.
Uniswap whales appear optimistic about more profits as major addresses holding between one million and ten million UNI tokens increased their holdings by 1.68 million UNI tokens within four days.
Source: IntoTheBlock
One of the whale addresses accumulate UNI is Galaxy Digital. According to Lookonchain, the digital asset manager withdrew 1.07 million UNI from exchanges on December 12 amid rising interest in Decentralized Finance (DeFi) tokens.
This whale activity coincided with bullish signals on Uniswap’s weekly chart, suggesting that a bullish reversal could occur despite the recent dip.
UNI’s price analysis
Uniswap’s weekly chart showed a bullish trend in play after breaking the neckline of a rounded bottom pattern, an indication that buyers were gaining strength.
The Moving Average Convergence Divergence (MACD) was bullish, as evidenced by the green histogram bars and the MACD line above the signal line.
The Average Directional Index (ADX) line tilted further north, showing that the current uptrend is strong.
Source: TradingView
If UNI can recover from the temporary pullback from multi-month highs and momentum remains bullish, the next price target is the Fibonacci level of 1,618 at $27.41.
The supply ratios on the stock exchange are increasing
The accumulation of whales and bullish trends on UNI’s weekly chart have failed to fully absorb sell-side pressure after the supply ratio rose to a seven-day high.
According to CryptoQuant, the ratio has reached 0.0025, indicating an increase in UNI’s supply on exchanges. This could lead to bearish trends if buying activity remains weak.
Source: CryptoQuant
One of the factors that may have led to an increase in this ratio is profit-taking behavior. According to InTheBlokUNI wallets’ profit rate has risen to 62%, the highest level since 2021. Therefore, previously underwater traders may choose to sell to book profits.
Derivatives data suggests…
Uniswap’s derivatives market data shows that the recent decline has caused a significant increase in long-term liquidations. The Long/Short ratio also fell to 0.959, indicating that short sellers slightly outnumbered long buyers.
Source: Coinglass
Open Interest fell 2% in addition to the price drop, but remains at a high level of $340 million, indicating that market participation is high.
Read the one from Uniswap [UNI] Price forecast 2024–2025
The increase in derivatives trading volumes also shows that despite the price decline, speculative interest in UNI remains high, indicating that there is room for recovery.
