The recent movement of $54 million worth of Uniswap (UNI) by a dormant whale to Coinbase has caused concerns about potential sell pressure and market volatility. Despite this, technical indicators suggest a bullish trend for UNI, with a potential retest of $7 on the horizon.
Derivatives data on Binance shows a bullish outlook for UNI, with 67.14% of accounts holding long positions. However, the Long/Short Ratio of 2.04 indicates a risk of a long squeeze if UNI fails to hold its range, leading to increased volatility near resistance levels.
Uniswap’s network activity has significantly increased, reflecting a surge in interest and user engagement. Transfer Volume, Active Addresses, and daily transactions have all shown substantial growth, supporting the ongoing recovery in UNI’s price structure and bullish sentiment.
Whale activity in the UNI market has introduced uncertainty, with Exchange Netflow turning positive and Large Holder Netflows increasing, suggesting whales may be repositioning or distributing holdings. The market’s response to this increased supply will determine whether UNI can advance towards $7 or face short-term weakness.
Overall, the combination of technical breakout, on-chain momentum, and whale activity points towards a legitimate trend reversal for Uniswap. While volatility is expected, UNI’s upside potential remains strong if bulls can hold firm against the revived supply dynamics in the market. The outcome of whether UNI breaks above $7 or faces rejection will depend on how traders and whales navigate the current market conditions.
