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Uniswap Price Rebounds as Whale Invests $2M in UNI, What’s Ahead? – Crypto News
Amid the recent market recovery, the Uniswap price correction managed to stabilize above $7.5 support. While the price trajectory is still sideways, the long-tail rejection in the daily chart shows buyers are preventing major correction. An analysis of the daily chart shows ongoing correction assists in the formation of a bullish continuation pattern called a symmetrical triangle. Should you buy this dip?
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Uniswap Price Analysis: How the Triangle Pattern Could Signal Next Recovery Wave
UNI, the native cryptocurrency of decentralized crypto exchange has recorded an aggressive correction in the past three weeks. From the $11.96 swing high, the coin price fell 43.7% to hit a low of $6.76.
The falling price managed to find suitable support at the lower trendline of the symmetrical triangle. This chart pattern has been guiding a sideways trend in UNI token since early March allowing to recuperate bullish momentum for higher rally.
The altcoin rebounded thrice from the bottom trendline indicating a crucial accumulation point for dip buyers. The Uniswap token currently trades at $8.05, hovering above the triangle pattern to bolster its next jump.
Also Read: Bitcoin Price Analysis As BitMex Witnesses Second Largest BTC Outflow
In a significant on-chain activity observed by Lookonchain, a whale or institutional investor spent 2 million USDC to acquire 243,198 UNI tokens. The investor strategically deposited 2 million USDC into a Kraken account earlier today prior to the transaction and subsequently withdrew the UNI tokens, valued at approximately 1.96 million USD, from Kraken just 50 minutes before Lookonchain’s report.
The whale/institution spent 2M $USDC to buy 243,198 $UNI again.
He deposited 2M $USDC to #Kraken 7 hours ago and withdrew 243,198 $UNI($1.96M) from #Kraken 50 minutes ago.https://t.co/WsgHzYCDv9 pic.twitter.com/cFrmGPEZw6
— Lookonchain (@lookonchain) July 10, 2024
Adding to this, the same whale deposited 4 million USDC to Kraken and withdrew 35,983 AAVE (valued at 3 million USD) and 123,183 UNI (valued at 1 million USD). These heavy transactions as UNI price trades above crucial support indicate a higher possibility of bullish reversal.
The potential upswing could propel the asset by 26% before challenging the resistance trendline of the triangle pattern. An upside breakout from the overhead trendline will signal the continuation of the uptrend and bolster buyers to retest the $17 high.
Technical indicator
- BB Indicator: The lower band of Bollinger band indicator challenge on the downside indicates the seller remains a dominant player.
- ADX: The rising ADX slope indicates no weakness in bearish momentum so far to bolster price reversal.
Frequently Asked Questions (FAQs)
A symmetrical triangle is a chart pattern used in technical analysis that indicates a period of consolidation before the price is expected to breakout or break down.
A ‘whale’ refers to an individual or organization that holds a sufficiently large amount of a cryptocurrency to influence market prices.
The Average Directional Index (ADX) is a technical analysis indicator used to quantify the strength of a trend.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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