Is Uniswap on the Verge of a Price Breakout as Whales and Institutions Take Interest?

The Uniswap ($UNI) ecosystem is experiencing a resurgence in activity, suggesting a potential shift in the winds of the crypto market. Popular crypto analyst Ali Martinez has shared insights that hint at the possibility of a trend reversal on the horizon.

Uniswap Easing Selling Pressure

Recent data revealed by well-known crypto analyst Ali Martinez says a significant 87.56% of UNI holders are now in a position where they haven’t made a profit, possibly marking the end of constant selling pressure. 

Notably, there is a surge in substantial $UNI transactions, indicating heightened interest from institutional investors and prominent UNI holders. 

These market participants appear to be preparing for a potentially big move in Uniswap, possibly expecting a significant breakthrough. This has led to a strong support level at around $4, giving hope to UNI supporters.

Analyst Ali Martinez highlights two essential price levels to watch. The first, at $4.23, is guarded by 7,000 addresses collectively holding 14.24 million UNI tokens. The second, at $4.45, is protected by 2,000 addresses with a stash of 10.28 million UNI tokens.

Mixed Signals from Uniswap’s Supply Dynamics

Meanwhile, earlier, Onchain Data Nerd reported that Uniswap Foundation deposited another 500K $UNI ($2.15M) to OKX at $4.3, which sounds like a potentially bearish move.

The supply of UNI held on exchanges has noted a spike from 62.27 million UNI to 65.35 million UNI between September 4 and October 27. This 4.94% uptick suggests that more investors are unsure about UNI’s future and are holding their tokens on exchanges to sell should the scenario present itself.

As the supply on exchanges continues to rise, Uniswap whales are offloading their holdings, which further helps the bearish stance. Wallets holding 100,000 to 1,000,000 UNI have reduced from 93.91 to 87.74 in under ten days. The 6.57% drop in the balance of whale wallets indicates but one thing – investors’ lack of confidence in bulls and the performance of Uniswap’s price.

RSI Indicator Hints 8% correction

The Relative Strength Index (RSI) hints at a possible 8% correction to $3.70 if the $4.02 support level falters. A surge in selling pressure could drive UNI down to $3.35, marking a significant 17% decline.