The cryptocurrency Uniswap (UNI) has recently experienced a rebound in value after a significant drop over the previous week. While other cryptocurrencies were reveling in a bullish market, UNI’s value had fallen by over 7%. Nonetheless, the past 24 hours have shown a reversal in this trend, with an increase in the token’s price.
Whale Accumulation Sparks Recovery
A notable accumulation event was seen where a cryptocurrency whale purchased a substantial amount of UNI from Binance. The whale’s move to buy 86,467 UNI, valued at roughly $1.23 million, coincided with a positive shift in market dynamics for Uniswap. As a result, UNI’s price has climbed by over 3.5% in the last day, reaching a value of $14.32 and boosting its market capitalization to beyond $8.5 billion.
According to Glassnode, the upswing in UNI’s price could persist. The Network Value to Transactions (NVT) ratio for Uniswap has dropped, often a sign that the asset is undervalued and ripe for a price surge. Santiment’s analysis also reveals that UNI’s availability on exchanges is diminishing, while off-exchange holdings are growing, suggesting an increase in buying pressure.
Potential for Increased Selling Pressure
However, there are indications that this bullish trend may face challenges. Data suggests that whale holders of UNI are parting with their tokens, potentially due to a predicted liquidation point at the $14.6 price level. If this liquidation occurs, it could introduce considerable selling pressure, threatening to halt the current positive momentum.
Analytical tools such as Bollinger Bands and the MACD are signaling a possible end to the bull rally, with the latter showing a bearish crossover. Despite this, the Money Flow Index (MFI) has been rising, often an indicator of an ongoing uptrend, providing a conflicting perspective on the future trajectory of UNI’s value.