- Whale deposits of Galaxy Digital Signal Potential Market Shift but also express concerns about price stability.
- Uni stands for a critical demand zone, with short liquidations that suggest a bullish sentiment in the short term.
Galaxy Digital recently made waves by depositing 600k uniswap [UNI] Tokens worth $ 4.37 million in Binance and OKX.
This promotion is part of a larger strategy, with 5.26 million uni -tokens, with a value of $ 40.6 million, deposited in the past week.
Such large transactions can significantly influence market sentiment, because whales often have the power to influence price movements.
That is why traders wonder whether this whale movement indicates an approaching rally or whether it is only the forerunner for a deeper correction for Uniiswap [UNI].
What suggests the in/out of the money analysis for Uniswap?
Currently, 19.49% of the Uniswap holders were “In the money”, Representative 194.9 million Uni -Tokens.
On the other hand, a much larger part – 74.35% – “Out of money”, indicating that most uniswap holders are currently confronted with losses.
This high concentration of underwater positions could play a crucial role in the future price action of Uni. If the price of Uni rises, many holders can even break, which may cause a wave of sale.
Source: Intotheblock
The price promotion of the Uni: consolidation or collapse?
Uniswap has recently been in a downward trend and is now testing a critical demand zone around $ 7.50. This is a crucial moment where Uni could return or break under the demand zone, which would be a sign of further weakness.
At the time of the press, Uni traded at $ 7.52, which reflects a modest increase of 1.4% in the last 24 hours. With the RSI at 37.63, however, there is potential for a rebound if the support in this demand zone applies.
Traders must keep a close eye on to see if Uniswap can maintain this level or whether a breakdown is in the cards under the demand zone.
Source: TradingView
Network growth and transaction counting fall: a warning signal?
Network growth and the number of transactions have seen significant falls, with the latest data that only show 10 new addresses that become members of the network. Moreover, the number of transactions remains low at 1,053.
This decrease in network activity indicates a decrease in market interest rate, because fewer transactions usually suggest a reduced demand.
If this trend continues, this can indicate a lack of investor confidence, which could negatively influence the price of Uniswap in the short term.
Source: Santiment
Uni’s Short liquidations have exhibited, with $ 48.03k in short positions that are liquidated on Binance compared to just $ 10.1k in long liquidations.
This suggests a potential short squeeze, in which traders who bet uni, are forced to cover their positions, adding upward pressure to the price.
The low long liquidations imply minimal sales pressure.
Will Uni repair or get a deeper decline?
Uniswap is confronted with a challenging market environment.
Despite the whale activity of Galaxy Digital, technical indicators, the in/out of money analysis and falling network growth all indicate a possible correction instead of an outbreak.
However, the higher short liquidations indicate that a potential short squeeze could push the price of uni higher.
Therefore, unless uni can break through resistance and stabilize above the most important support levels, a deeper decline seems more likely.