All about Unibase’s 45% surge after fakeout and if holder distribution will be a problem
Exploring why Unibase's holder distribution is a threat to its recovery journey.
Unibase [UB], the first multi-agent cooperative AI memory layer, led the crypto market by daily gains of more than 45%. Its daily trading volume increased by 180% to around $65 million.
As trading activity increased though, UB appeared to be shifting from bearish to bullish on the charts. This, despite there being no clear confirmation.
Unibase recovers after fakeout to the downside
Unibase reclaimed the lost support level at $0.09136, rendering the breakdown a fakeout. Such a move wiped out all weak hands that were holding UB long positions.
The price action of the altcoin rose above the 50 and 100 moving averages (MAs), but it was still trading below the 200 MA. This followed a bottom around $0.07.
The 200 MA seemed to be coinciding with the horizontal resistance at $0.15. If UB can obliterate this resistance, then the $0.2338-$0.25 zone will become the next target.
This bullish scenario can be supported by the CVD and MACD indicators. The CVD showed that over 108 million UB had been bought on Binance’s derivatives market while the MACD confirmed the market’s strength.
To maintain this bullish flip, UB needs to stay above the $0.11-$0.12 zone and also break past $0.15.
Otherwise, this rally may be rendered a minor reset to last week’s 30% plunge that led to the support being lost.
Key UB metrics stay positive
Further analysis of participants’ behavior revealed harmony in sentiment. That is, sentiment from both whales and retailers seemed to be bullish. However, the ML signal and actual performance signals dictated otherwise.
Additionally, holders increased from 67.67K to 67.88K in just two days. This strengthened the signal readings from retailers and whales.
Moreover, the OI-Weighted Funding Rate turned green with the reading rising to this month’s peak of 0.04%. This indicated that bulls may be paying a premium to keep their positions open.
Holder distribution raises concerns – What to expect?
Finally, the holder distribution of Unibase has been attracting scrutiny too.
Top wallet addresses controlled over 80% of the supply with a single entity holding over 25%. Another three wallets held 15%-16% while remaining three held 8.35%, 4.77% and 3.97%, respectively.
With such regard, it can be interpreted that high concentration in few wallets means a high risk token. However, for that to be the case, it needs to be determined if these are treasury/vesting wallets or whales.
In case of the former, a fair distribution would mean no harm to the price. On the contrary, unfair distribution would be bearish. If the tokens are held by whales, they might decide to dump, crashing the price just like SIREN and RAVE, among other tokens.
Final Summary
- Unibase surged by 45%, recovering its losses that led to a fake breakdown below $0.09136.
- UB’s price was pushed up by positive sentiment from market participants.
