A major shareholder rekindled interest in Uniswap (UNI) after withdrawing 360,071 UNI, worth about $1.06 million, from OKX. Change indicates that the lender prefers to keep the tokens away from the exchange instead of holding them for immediate sale.
Such actions often show sentiment among whales, especially when large withdrawals follow periods of price weakness. However, one sale alone did not guarantee a larger trend. Instead it showed that at least one major saw the current prices attractive to accumulate strongly.
Meanwhile, to move it is consistent with sentiment corrections across markets, bolstering the argument that whales have continued to bear prices despite UNI’s near-refusal.
Foreign exchange has strengthened the problem of accumulation
Spot market activity continued to support the accumulation story after UNI posted $1.18 million in cash.
Investors withdraw more tokens than they put in, reducing the current supply that is being sold. This behavior often reflects the growing confidence among asset holders who prefer to transfer their assets into private wallets instead of leaving them on the platform.
Recent outflows have remained subdued compared to the large spikes shown on the chart. However, the unchanged netflows show that the pressure on the selling side has not increased. Instead, the exchange rate continued to decline, providing another sign of support along with the recent withdrawal of the whales.
Why did Binance traders continue to support Uniswap?
Derivatives traders continued to show confidence even though UNI traded below the key level.
At the time of publication, Binance’s Long / Short showed 66.04% of accounts with long positions, while only 33.96% were short. The imbalance reflected a steady sentiment among participants, even as UNI struggled to extend its recent recovery.
However, the long-term bullish bias increased the market’s interest in sudden reversals as positions with high leverage can be relieved if support fails. Even so, traders had not reduced their exposure.
Instead, they continued to favor higher prices, suggesting that consumers may be able to adjust later to resist weakness due to constant demand.
UNI faced resistance as the bullish momentum weakened
Unauthorized it was locked below the $3.014 resistance after failing to extend its sharp recovery from the $2.394 support area. Buyers protected the major downside, but failed to generate enough strength to take the next resistance level.
Meanwhile, the Parabolic SAR continued to print above the price as of writing, confirming that traders are in control of the trend. MACD also showed the end of buying power when both signal lines converged near zero when the histogram was broken.
The combination indicated that the bullish pressure gradually eased after the recovery session. However, UNI still traded more liberally than it had recently, leaving buyers with the option of further resistance if new demand is found at current levels.
Can the whales help UNI regain its resistance?
The volume of whales, the continued exchange, and the strong concentration among Binance traders together support Uniswap’s opinion. However, the chart remained cautious as UNI did not receive any more $3.014 resistance, while technical indicators continued to show pressure to sell.
If buyers continue to be more aggressive and struggling traders keep their faith, UNI may again challenge resistance. Until then, the market may need to participate more before a sustainable recovery can be assured.
Brief Summary
- The surge in whales and the exchange’s exits reflects shareholder confidence despite UNI’s underselling.
- Binance traders stayed long while technical indicators remained price sensitive.
