Uniswap The ecosystem has been experiencing a revival in recent days, signaling changes. Crypto analyst Ali Martinez made remarkable predictions by sharing his views pointing to the possibility of a trend reversal on the horizon.
Latest announced by Ali Martinez datashowing that 87.56% of UNI holders are currently unable to make a profit, possibly marking the end of sustained selling pressure.
Interestingly, the number of large $UNI transactions are rising, signaling a spike in institutional players’ and #UNI whales’ interest at current price levels.
They may be investing or positioning themselves before #Uniswap breaks out pic.twitter.com/HC3uShGAe0
NEWS CONTINUES BELOW— Ali (@ali_charts) October 29, 2023
In particular, there is an increase in significant $UNI transactions, indicating increased interest from institutional investors and prominent Uniswap holders.
These market participants are acting in anticipation of a big move as they prepare for a potentially big move in Uniswap. This led to a strong support level around $4, which gave hope to UNI supporters.
Analyst Ali Martinez highlights two important price levels to watch. The first of these, $4.23, is a zone guarded by 7,000 addresses that collectively hold 14.24 million UNI tokens. The latter, at $4.45, is protected by 2,000 addresses storing 10.28 million UNI tokens.
Uniswap Supply Dynamics Offer Mixed Signals
Data Nerd reports that Uniswap Foundation deposited another $500k UNI (worth $2.15 million) into OKX at $4.3. This is interpreted as a potential downward trend.
12 hours ago, Uniswap Foundation deposited another 500K $UNI ($2.15M) to #okx at $4.3.
They have deposited a total of 9.79M $UNI ($4.19M) to CEXs and Falcon X in the last 3D. pic.twitter.com/FmeC222RKh
— The Data Nerd (@OnchainDataNerd) October 27, 2023
The Uniswap supply held on exchanges attracted attention by increasing from 62.27 million UNI to 65.35 million UNI between September 4 and October 27. This 4.94% increase shows that more investors are unsure of UNI’s future and are holding their tokens on exchanges to sell if the scenario plays out.
As supply on exchanges continues to increase, Uniswap whales are reducing their holdings, further adding to the bearish trend. Wallets holding 100,000 to 1,000,000 UNI dropped from 93.91 to 87.74 in less than ten days. The 6.57% drop in the balance of whale wallets indicates only one thing: investors’ distrust of the bulls and Uniswap’s price performance.
The Relative Strength Index (RSI) indicates that if the $4.02 support level is broken, there could be an 8% correction towards $3.70. An increase in selling pressure could push UNI as low as $3.35, indicating a significant 17% decline.
However, if buying pressure prevails and allows UNI to close above $4.38, this bearish outlook could turn negative and potentially rise 15% to $5.04. The inherent volatility of the crypto market highlights the importance of investing consciously and cautiously in the face of such rapid fluctuations.