UNI could be preparing for a breakout if these metrics are to be believed

• UNI whales were selling their holdings as the supply held by top addresses dropped 
• Market sentiment around UNi turned bullish in the last 24 hours 

While most cryptocurrencies in the market witnessed a bullish sentiment, Uniswap [UNI] recently saw a transfer worth millions of dollars. Such transactions are often followed by shifts in price action, which seemed to be the case for UNI in the last few hours of press time.

Furthermore, the fact that several metrics turned bullish for UNI, suggesting a hike in its price over the days to follow.

Read Uniswap’s [UNI] Price Prediction 2023-24

Is Uniswap under selling pressure?

Unlike most cryptocurrencies that registered price upticks last week, UNI showed a different behavior. According to CoinMarketCap, UNI was down by more than 1.5% in the last seven days.

While the token’s price dropped, Lookonchain’s latest tweet revealed that UNI witnessed a massive transaction.

Uniswap Foundation has transferred out a total of 9.8M $UNI($40.66M) in the past 6 days.

3.4M $UNI($14.1M) was deposited to #OKX;

3M $UNI ($12.45M) was deposited to #Kraken;

3.4M $UNI ($14.1M) was transferred to #FalconX.https://t.co/uHuPHgJui0 pic.twitter.com/eZEfPGUFkH

— Lookonchain (@lookonchain) October 29, 2023

As per the tweet, the Uniswap Foundation transferred out a total of $9.8 million. This was worth more than $40 million in the last six days. Such transfers are often followed by a change in price action.

In fact, Ali, a popular crypto analyst, recently posted a tweet on X (formerly known as Twitter) pointing out that more than 87% of UNI investors were out of money. Ali mentioned that UNI investors were in disbelief; selling pressure had gotten exhausted, and an important support floor was built around $4.

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 bulit around $4. pic.twitter.com/HBWbOMv1BG

— Ali (@ali_charts) October 29, 2023

A similar trend of selling was also noted upon checking UNI’s on-chain metrics. As per CryptoQuant, UNI’s Exchange Reserve was increasing. As the exchange reserve continues to rise, it indicates higher selling pressure.

Santiment’s chart revealed that UNI’s Supply on Exchanges went above its Supply Outside of Exchanges. Thus, proving that investors were in fact selling the token.

Source: Santiment

Furthermore, the confidence of UNI whales was also declining. This was evident from the drop in its Supply Held by Top Addresses.

The recent sell-off led to UNI holding the #12 rank on the list of the cryptocurrencies that the top 100 Ethereum whales were holding in the last 24 hours. Nonetheless, UNI’s total amount of holders did go up over the last seven days, which was an optimistic development.

What to expect from UNI? 

While UNI investors continued to sell, it was important to take a look at what past trends suggested. Hyblock Capital’s liquidity heatmap revealed that in the recent past, UNI’s liquidation peaked on 1 October when its price touched the $4.6 level.

Whenever such liquidations happen, UNI’s price drops. However, if the current state was to be considered, UNI’s liquidation was comparatively low.

Source: Hyblock Capital

As predicted by Ali on X, UNI’s price was actually showing signs of a bull rally. As per CoinMarketCap, UNI’s price had increased by more than 1.1% over the last 24 hours.

Apart from price, the token’s daily trading volume also went up by more than 57%, reflecting investors’ willingness to trade the token. It was interesting to note that 90% of Uniswap’s trading volume comes from Mainnet and Arbitrum.

~90% of Uniswap's trading volume comes from Mainnet and @arbitrum pic.twitter.com/F5GrUe3Vjz

— Token Terminal (@tokenterminal) October 29, 2023

Market Sentiment around UNI also improved in the last 24 hours, as evident by the massive rise in its social mentions. Bullish sentiment around the token also surged by more than 76%.

To add to that, another bullish signal was Uniswap’s altrank, which improved in the recent past. Thus, increasing the chances of a continued price uptrend in the days to come.

Source: LunarCrush

A look at UNI’s daily chart also pointed out quite a few bullish indicators. For instance, Uniswap’s Relative Strength Index (RSI) gained upward momentum. Its Chaikin Money Flow (CMF) also went up, increasing the chances of a northbound price movement.

How much are 1,10,100 UNIs worth today      

However, a few of the indicators remained bearish, such as the Money Flow Index (MFI), as it was resting well below the neutral mark. Additionally, UNI’s Bollinger Bands (BB) revealed that the token’s price entered a less volatile zone. This minimized the chances of an unprecedented price surge in the coming days.

Source: TradingView