Uniswap (UNI) price has increased by 4% in the last 3 trading days. However, crypto investors are not certain about the bull momentum. Will bears cause another drop?
- Uniswap (UNI) has increased by 4% since the beginning of the week.
- As hodlers transfer their tokens to more exchanges, sell orders continue to accumulate on top exchanges.
- UNI will face significant resistance at $5.9.
Uniswap (UNI) price has increased by 4% in the last 3 trading days. However, crypto investors are not certain about the bull momentum. Will bears cause another drop?
When altcoin markets increased by 5% on April 26, Uniswap showed a bullish price increase. However, on-chain data shows that Uniswap hodlers are transferring their tokens to exchanges more and more. Could bears be setting up bull traps?
Uniswap Investors Are Sending UNI to Exchanges!
On-chain data shows that Uniswap investors have been transferring a significant portion of their tokens to exchanges in recent weeks. Glassnode’s Exchange Balance metric tracks the real-time balances of a token deposited into recognized exchange wallets.
When examining the graph below, it can be seen that the balances of UNI deposited into exchange wallets increased by 4.2 million tokens between April 2 and April 25. This corresponds to an 11% increase in tokens ready to be traded on the market.
Investors may aim to make short-term profits when they transfer their assets to exchanges. Therefore, with investors transferring such a large amount of tokens to exchanges in a short period of time, Uniswap may face selling pressure in the coming days.