UNI’s week of turbulence: Of its price surge, unusual unloading, and TVL dip
- Uniswap Foundation sold approximately $29 million worth of UNI in the past 48 hours.
- UNI’s price has commenced a decline but still trades around $4.
Uniswap [UNI] experienced a significant price surge in the past few days. Alongside the rise in the price of UNI, there has also been a noticeable occurrence of selling from an unusual address, suggesting a potential dump.
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Uniswap Foundation cash in on UNI
On 25 October, Lookonchain shared a noteworthy transaction via Etherscan. The Uniswap Foundation conducted this transaction, transferring 6.8 million UNI tokens valued at $29.16 million to a new address. This recent action followed another move observed on 23 October when the foundation sold 3 million UNIs, worth $13 million, on the Kraken exchange.
Furthermore, these sales occurred during a period when UNI’s price was experiencing a positive trend, suggesting a sell-off strategy. Given these latest developments, the market may be poised for another sell-off. How might this impact the price trajectory of UNI?
UNI’s price uptrend comes to a halt
When examining the daily timeframe chart of Uniswap, we can see that it recently enjoyed several consecutive days of upward trends. Thus, propelling its price above the $4 mark. However, at the time of writing, the price began to retreat.
Before this decline, UNI experienced an impressive gain of nearly 10%, entering a bullish trend. The chart indicated that by the close of trading on 24 October, UNI had incurred a loss of more than 3.5%.
Moreover, at the time of this writing, it had decreased by nearly 1%, trading at approximately $4.1. The previous bullish trend that UNI had been riding came to a halt with this price decline. Furthermore, it can be inferred from the price trend that the recent sell-off had a negative impact on UNI’s performance.
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Uniswap’s TVL sees a slight decline
The repercussions of the sell-off extended beyond the price of UNI. According to data from DefiLlama, Uniswap’s Total Value Locked (TVL) started to show a slight decrease. Before this, the TVL had been on an upward trajectory, with an impressive addition of over $100 million in the past seven days.
At the time of writing, the TVL still stood at over $3 billion. Although the decline wasn’t substantial at this point, it had the potential to become more pronounced if the price decline persists.