Uniswap’s native token, UNI, has faced a significant sell-off, dropping 2.85% in the past 24 hours to $5.81 and extending its weekly losses to 20.45%. The decline follows a major transaction by a whale, who deposited 2.25 million UNI tokens ($13.71 million) onto Kraken, a move that often signals impending selling pressure.
Whale Sell-Off Adds to UNI’s Bearish Outlook
According to Lookonchain, the whale acquired these UNI tokens at an average price of $6.92 between September 2023 and November 2024. At its peak, this holding had unrealized profits of $26.5 million, but recent declines have left the investor with estimated losses of $1.86 million, prompting the large transfer.
Exchange Data Confirms Selling Pressure
On-chain data from Santiment paints a bearish picture for UNI. The Exchange Flow Balance, which tracks the net movement of tokens into and out of exchange wallets, jumped from -428,920 to 2.23 million in just 24 hours. Additionally, UNI’s Supply on Exchanges surged by 2.67%, signaling increased investor sell-offs.
Further concerns arise from Santiment’s Daily Active Addresses index, which has been on a downtrend since mid-November. A drop in this metric indicates declining blockchain adoption and weakening demand for UNI.
Technical Indicators Show Strong Bearish Momentum
UNI’s technical indicators reinforce the negative sentiment:
- Bollinger Bands: The lower band sits at $5.608, with UNI’s price hugging this level, indicating strong bearish momentum.
- Relative Strength Index (RSI): Currently at 28.83, UNI is deep in the oversold zone, which may trigger a short-term relief rally if buyers step in.
- MACD Indicator: The MACD line at -0.942 remains below the signal line (-0.858), confirming ongoing downward momentum.
UNI’s Key Support and Resistance Levels
Uniswap is struggling under sustained selling pressure, with key resistance at $7.470 and support at $5.608. A break below $5.608 could push UNI toward $5.00 or even $2.50, while a recovery requires a breakout above $7.470 to regain bullish momentum.
As market sentiment remains fragile, investors are watching closely for potential catalysts or further whale movements that could impact UNI’s trajectory.
