Uniswap (UNI), a leading altcoin, is trying to recover from a sharp decline at the beginning of the month. However, a significant investor’s sale of a large amount of UNI coins is putting pressure on its price. Recent market developments suggest that the altcoin may enter a much stronger downtrend.
$40 Million UNI Coin Sale Shakes the Altcoin
According to blockchain-based transaction tracker Lookonchain, large investment firm Galaxy Digital transferred 600,000 UNI coins to Binance. This transfer is valued at approximately $4.37 million.
However, the more concerning development is Galaxy Digital’s recent transfer of a total of 5.29 million UNI coins to Binance and OKX exchanges within the past week. These transfers, deemed to be for selling purposes, have a total value of around $40.60 million. Major sales in the market typically pull prices down, and similar effects are expected for UNI.
UNI Technical Analysis: Where Can the Price Go?
Currently, UNI is trading below the critical $8 level. Technical indicators show that the price remains weak and is in a downtrend. If UNI fails to rise above the $8 mark, it could potentially decline by 25%, falling to as low as $5.50.
The altcoin is currently trading below the 200-day Exponential Moving Average (EMA) level, indicating strong bear market signals. This technical indicator is often used to determine whether an asset is in a bullish or bearish trend.
Given the ongoing sales by Galaxy Digital, the selling pressure on the altcoin could increase significantly. If investors believe this trend will continue, the price of UNI coin may drop even further.
