Uniswap (UNI) may experience a trend reversal as selling pressure decreases, with 87.56% of holders “Out of the Money.”
Key Takeaways
- Uniswap ($UNI) sees a surge in institutional and whale purchases.
- Analyst Ali Martinez suggests a potential trend reversal for UNI.
- UNI price holds a key support level at $4.
- Two supply walls at $4.23 and $4.45 could determine UNI’s bullish breakout.
Uniswap Selling Pressure Exhausting
The Ethereum-based decentralized exchange, Uniswap (UNI), has recently witnessed a notable increase in network activity, accompanied by growing institutional and whale interest. Crypto analyst Ali Martinez has identified key indicators that suggest a potential trend reversal for UNI.
Uniswap Whale and Institutional Interest Rising, UNI Price Breakout soon?https://t.co/Z9Mu30LN2p pic.twitter.com/x3YGZ9fpvl
— John Morgan (@johnmorganFL) October 30, 2023
Martinez’s analysis reveals that a significant 87.56% of UNI holders are currently “Out of the Money,” indicating that selling pressure appears to have waned. This has led to the formation of a robust support level at approximately $4, instilling renewed optimism among UNI stakeholders.
Furthermore, there has been a noteworthy uptick in the number of substantial UNI transactions. This surge in activity suggests increased participation from institutional investors and prominent UNI holders who may be strategically investing or positioning themselves ahead of a potential Uniswap breakout.
Key Levels to Watch for UNI
As of the latest data, Uniswap’s price is trading at $4.16, showing a 1.46% increase, with a market capitalization of $2.4 billion. The cryptocurrency has successfully maintained its critical support level at $4.
Analyst Ali Martinez points out that while UNI has established a crucial support level at $4, two significant supply walls could impact its bullish breakout. The first barrier, at $4.23, is held by 7,000 addresses collectively containing 14.24 million UNI tokens, while the second obstacle lies at $4.45, with 2,000 addresses amassing 10.28 million UNI tokens.
The Relative Strength Index (RSI) suggests the possibility of an 8% correction to $3.70 if the $4.02 support level fails. In a more bearish scenario, increased selling pressure could push UNI down to $3.35, marking a significant 17% decline.
To Conclude
However, a strong surge in buying pressure that leads UNI to close above $4.38 could nullify this bearish outlook, potentially triggering a 15% upswing to $5.04. This underscores the inherent volatility in the cryptocurrency market, emphasizing the need for investors to stay informed and vigilant amid rapid fluctuations.
The growing interest from institutional investors and the establishment of key support levels indicate that UNI is in an exciting phase. While the cryptocurrency market remains volatile, the potential for a UNI price breakout is a development to watch closely. Traders and investors should keep an eye on the critical levels mentioned by Ali Martinez to gauge UNI’s future trajectory.
