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Uniswap (UNI) price saw a major decline in the weekly charts. However, in the last 24 hours, the trend has started to reverse. Yet, will this trend signify a full-blown bull rally? The past week was not very favorable for UNI. While most cryptocurrencies were enjoying a bullish phase, Uniswap’s value decreased. According to the website 21milyon.com, UNI suffered a loss of over 7% in the last seven days.
Accumulation Phase for UNI
In the popular altcoin, a whale took the opportunity to accumulate more UNI while the price was low. The cryptocurrency analytics firm Lookonchain recently shared that a whale withdrew 86,467 UNI worth $1.23 million from Binance. Following the purchase, UNI gained its first momentum and recorded a recovery. UNI’s price increased by more than 3.5% in just the last 24 hours. At the time of writing, UNI is trading at $14.32 with a market value of over $8.5 billion.
Glassnode data suggests that there is a high probability of the uptrend continuing. Uniswap’s Network Value to Transactions (NVT) ratio has recently decreased. A falling metric can indicate that a token’s value is undervalued and the price may increase. According to analytics firm Santiment, the supply of UNI on exchanges has decreased, but the off-exchange supply has increased, indicating high buying pressure.
Selling Pressure on UNI
However, whales, the big players in the cryptocurrency markets, sold their tokens due to a decrease in the supply of UNI held by the top addresses. Looking at the data from Hyblock Capital, the potential reason behind this became apparent. It was detected that a significant amount of UNI would be liquidated when its value reached the $14.6 threshold.
An increase in liquidation could mean high selling pressure, which could end the token’s bull rally in the coming days. Bollinger Bands also indicate that the UNI price has entered a less volatile region. The MACD has also shown a bearish crossover, which could mean that the bull rally may soon come to an end. However, the Money Flow Index (MFI) has recorded an increase, which is a development indicating an uptrend.
