Uniswap Price Analysis: Insider Wallet Likely to Sell Nearly $10M in UNI, Crash Ahead?

The cryptocurrency market experienced a notable rebound mid-week, with Bitcoin climbing from $63,424 to $68,252. Accompanying this surge, the Uniswap price analysis shows a quick reversal from multi-month support at $7. This bullish turnaround uplifted the asset by 10% to trade at $7.734, while the market cap jumped to $4.63 Billion. However, concerns of a potential correction have emerged following a substantial deposit of UNI tokens by a wallet associated with the Uniswap team.

Also Read: Peter Schiff Blasts RFK Jr’s Bitcoin Buy Plan As ‘Vote-Buying’ Strategy

Major Support at Risk as Uniswap Team Wallet Transfers $9.15M to Coinbase

Recent data from Spot On Chain reveals a notable transaction involving a wallet associated with the Uniswap team. The wallet deposited 1.19 million UNI tokens, worth approximately $9.15 million, into Coinbase earlier today.

This #Uniswap team-linked wallet deposited 1.19M $UNI ($9.15M) to #Coinbase 2 hours ago.

The wallet received 9M $UNI from @Uniswap in 2020 and has deposited 7.17M $UNI ($58.5M) to Coinbase at ~$8.16 since July 4, 2024.

The remaining 1.83M $UNI ($14M) may be deposited away soon.… https://t.co/9Ve2A3GQl4 pic.twitter.com/y5i3qdpkKj

— Spot On Chain (@spotonchain) July 27, 2024

This wallet, which initially received 9 million UNI tokens from Uniswap in 2020, has been actively trading. Since July 4, 2024, it has offloaded 7.17 million UNI, amounting to $58.5 million at an average price of $8.16 per token. This activity leaves a remaining balance of 1.83 million UNI, valued at around $14 million, which might also be liquidated soon.

While the UNI price finds support at a major accumulation level, this heavy transaction raises concerns about further downfall. However, a closer look at the technicals suggests that UNI is at strong support and could trigger a bounce soon.

Also Read: Mt Gox Bitcoin Creditors Face Withdrawal Restriction On Bitstamp

Uniswap Price Analysis: Triangle Formation and RSI Suggest Uptrend

The Uniswap price analysis in the daily chart shows that this asset is strictly trading within two converging trendlines. The lower trendline has been intact since October 23, providing dynamic support, while the upper resistance trendline, established on May 24, has formed a triangle pattern.

In theory, this chart setup is known to lead to a sideways for the prevailing trendline to regain momentum before the next directional move. On July 25th, the UNI showed another reversal from the lower trend, signaling a bull cycle within the triangle.

The daily RSI slope approaching the midline (50%) accentuates the improving market sentiment. If history repeats, the Uniswap price showed change triangle resistance at $9.25, registering a potential bounce of 18.25%.

On the contrary, the heavy deposit of the UNI token by the Uniswap team hints that this time could be different. A recent death crossover between the 50D and 200D Exponential Moving Average may accelerate the bearish momentum and asset in triangle pattern breakdown.

A bearish break below the lower trendline will invalidate the bullish thesis and bolster sellers to drive a correction toward the $5 psychological level.

The post Uniswap Price Analysis: Insider Wallet Likely to Sell Nearly $10M in UNI, Crash Ahead? appeared first on CoinGape.