As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market swings and trends. The current retreat of Uniswap (UNI) token is reminiscent of some of the bearish periods we’ve witnessed in the past, albeit with its unique characteristics.
On Monday, November 4, I observed a persistent decline in Uniswap’s price, marking five consecutive days of fall. This downturn seemed to be driven by whales offloading their UNI tokens. The token dipped to $6.9, a level not seen since October 4, representing a 60% drop from its peak this year.
Uniswap price retreats as whales dump
In the last day, it appears that some large investors (whales) sold off their UNI tokens, which could be why its value has decreased according to blockchain information.
According to data from Etherscan, a single large investor (referred to as a ‘whale’) transferred approximately 628,406 UNI tokens valued at around $4.37 million to the popular cryptocurrency exchange platform, Crypto.com.
A different whale transferred approximately 186,558 Uniswap (UNI) tokens valued at around $1.3 million to Coinbase Pro, incurring a transaction fee of roughly $0.32.
Monitoring whale activity, specifically their token movements, can serve as a reliable signal that significant investors are offloading their tokens, which often suggests a downtrend or bearish market condition.
Other Factors That Could Trigger UNI Crash
Despite regaining a larger share of trading volume compared to Raydium, Uniswap still experienced a significant sell-off, as indicated by data from DeFi Llama, with a volume of approximately $1.58 billion in the last 24 hours.
Over the past week, Uniswap has handled tokens valued at approximately $12.5 billion, whereas Solana’s token processing was around $7.85 billion. However, it’s worth noting that a month ago, Raydium surpassed Uniswap in terms of trading volume.
Based on data from CoinRank, it’s been estimated that Uniswap saw around 13.9 million unique users within the past month, whereas Raydium had approximately 90 million users during the same period.
Uniswap intends to enhance its platform by introducing UniChain, a second layer network boasting quicker block times, cross-chain compatibility, and a self-governing validator system. In a recent announcement on Sunday, the team highlighted that since its launch, the bridging volume within their ecosystem has skyrocketed to $13 million.
Uniswap’s dip follows a similar trend seen in other cryptocurrencies, as uncertainty surrounding the U.S. election persists. Traders are anxious about the tight race between Kamala Harris and Donald Trump, which makes it challenging to forecast the election outcome.
UNI Price Analysis: Uniswap Crashes Below Key Support levels
Based on technical analysis, there seems to be a potential for further price drops, as large investors (often referred to as ‘whales’) have been transferring their tokens recently.
On the day-to-day graph, the token dipped beneath the rising trendline (formed by successive lower highs since August 5), indicating that the bears may be gaining control.
The Uniswap price dropped beneath the $7.1620 level, which represents the bottom line of a triple top chart pattern, with the peak being at $8.30.
Additionally, the token’s value has dipped below both its 200-day and 50-day exponentially weighted moving averages, potentially signifying a “death cross” formation. Notably, the last time this pattern appeared was on July 25, and in the subsequent period, the token experienced a decline of approximately 40%.
Consequently, taking the easiest route seems to point towards a decrease, potentially aiming for the August low of around $4.718, which represents a drop of about 31% compared to Monday’s price level.
If the price of UNI surpasses the crucial triple-top mark at $8.30, this bearish perspective will no longer hold true. Crossing that threshold would indicate further increases, and the next possible target could be the psychologically significant level at $10.
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2024-11-04 18:57