What you need to know
Recent purchases indicate that Uniswap Whales have returned. UNI’s removal from exchanges at a price below $10 might be a signal that the market is changing.
Uniswap [UNI] After staying over $10 for the previous month, the price dropped below that level. The crypto market has experienced a positive cycle in August, unlike previous months.
Traders expect the Q4 rally to begin in September, based on the August anomaly.
There have been mixed feelings in the first days, but it could be that whales are shaping a different narrative.
Whales pulling UNI from the exchanges
OnchainLens dataWhales are returning to the sea after taking a profit. One notable transaction was the purchase of 153 975 UNI worth $1.5 Million on CoW Protocol.
The whale scoops up Uniswap as well Maker [MKR] Spark [SPK]. Later, all these funds have been moved to liquidity.
As seen by the Exchange Netflow Data, further analysis revealed that UNI is gradually departing exchanges. About 55K tokens were withdrawn on the day. This is about 18K extra than the previous day.
Source: CryptoQuant
After 400K UNI were sent for exchange, the price dropped to $9.35. Even though exchange flows are rising, this usually signals an accumulation phase for holders.
The question is, however, whether the new dynamics will lead to an abrupt reversal.
UNI’s chart showed that it was nearing a critical accumulation zone of $8.74, which had previously triggered a rally by 40%. During the rally, UNI broke through resistance at $11, and then was immediately rejected at $12.25.
A surge above $11 was a fake breakout due to the instantaneous rejection. A different angle indicated that DeFi Protocol was moving within the range of $8.74-the tested resistance.
The stage was now set for the upward trend to reverse as holders increased their accumulation. According to the whales, $9.74 and 8.99 were the best levels for buying.
TradingView
Alternatively, the altcoin may dip under $8.74 if the liquidity is below the identical lows. A sustained stay below this level could invalidate the set-up.
Since the start of September, Chaikin Money Flows (CMFs) have been on the rise. The capital flow into UNI was confirmed despite the continuing decline in the price.
But more proof was needed to make the reverse happen.
As swaps are simplified, volume surges
Ethereum [ETH] The Unichain Layer 2 Volume has exceeded $50 billion. Arbitrum [ARB], And Base is leading. Unichain’s progress through its collaboration with other companies could be a major factor.
Unichain Labs and ed Wormhole partner to bring tokens of main multichain networks onto Unichain. Wormhole was responsible for the interoperability, which aims to make swapping easier for users.
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Source: ambcrypto.com
