Uniswap’s UNI token looked set to give up last week’s gains after its bearish start this week. However, it posted a strong mid-week rebound, pushing it to last week’s highs at press time.
UNI peaked at $6.62 on July 9 after a strong bullish performance. However, the bears took over over the weekend and pushed him away.
It recovered to a low of $5.45 on July 12 before UNI rallied more than 19%. It was trading at $6.28 on July 14, securing its position above the 50-day moving average.
The bullish reversal took place just above UNI’s 50% RSI level. Its money flow indicator confirmed that ample accumulation was supporting the upside. Well, both indicators suggested that UNI had more room for growth. But the question remains: is there enough demand to support the bulls?
UNI’s short-term outlook
UNI’s bid held by the top addresses metric reveals whales sold off after accumulating in the May crash. Their balances are almost back to May levels. This means that they have cashed in as the price recovers.
Despite lower balances on top addresses, the number of active addresses holding UNI has increased over the past few days. The number has increased by more than 400 addresses in the past three days.
Additionally, measuring the number of whale transactions recorded a significant increase in whale activity. There were up to 23 transactions worth more than $100,000 in the past 24 hours on July 14. UNI’s advantage during this period suggests that most whale activity may be biased toward accumulation.
The increase in the number of whale trades is expected to lead to a larger price increase than UNI’s performance in the last 24 hours of July 14. This is because some of the whales have also banked.
Addresses holding between one and 10 million UNI coins have reduced their balances, limiting the upside potential. Their balances fell by 0.02% in the last 24 hours of July 14, while addresses holding between 100,000 and one million coins increased their holdings by 0.01% over the same period.
Addresses holding between 10,000 and 100,000 UNI coins added to their balance by 0.01% over the same period. Meanwhile, addresses containing more than 10 million coins remained constant.
UNI’s measurements revealed that there is not much buying pressure from whales. This explains the limited rise in the last 24 hours of July 14.
The same metrics reveal that addresses holding between 10,000 and one million coins have racked up considerable UNI over the past four to five days.
This explains the rise, but exits from addresses with one million to 10 million coins are responsible for the current friction that bears are facing.