The rare UNI transfer by Uniswap Foundation had put significant pressure on the token over the past week. But the data suggest that “selling pressure has gotten exhausted.”
The prominent on-chain analyst, Ali Martinez, believes that UNI could be on the verge of a breakout.
UNI Gearing up for Breakout?
Citing Intotheblock’s data, Martinez said that over 87% of UNI holders are positioned “Out of the Money” meaning they are yet to realize a profit. This essentially suggested that Uniswap’s native token is preparing for a breakout.
“With 87.56% of $UNI holders positioned “Out of the Money,” Uniswap is preparing for a breakout! UNI investors are in disbelief; selling pressure has gotten exhausted, and an important support floor was built around $4.”
The analyst further pointed out the surge in the number of large UNI transactions, signaling a spike in institutional players’ and UNI whales’ interest at current price levels.
Such a trend suggests that these market participants may be “investing or positioning themselves” before UNI breaks out.
The analyst speculated that even though UNI established a crucial support level at $4, there are two significant resistance barriers it must surpass in order to indicate a bullish breakout.
The first barrier is positioned at $4.23, with 7,000 addresses accumulating 14.24 million UNI, while the second one is at $4.45, where 2,000 addresses control 10.28 million UNI.
Uniswap’s Token Transfer
Over the past six days, Uniswap Foundation transferred out a total of 9.8 million UNI, worth around $40.66 million. Lookonchain revealed that the team behind the development and expansion of the Uniswap protocol deposited 3.4 million UNI, worth around $14.1 million, to OKX.
The foundation deposited the rest 3 million UNI (worth $12.45 million) and 3.4 million UNI (worth around $14.1 million) to Kraken and FalconX, respectively, during the period.
The movement of such huge stashes of UNI had not occurred in the past two years. This essentially spurred concerns about a potential sell-off. Despite mass inflow to exchanges, there hasn’t been any drastic reduction in UNI’s price, and recorded a minor loss of 1.54% over the last seven days.
In fact, the token was still holding its price well above $4.