Uniswap (UNI) is garnering attention among large investors known as ‘whales.’ A recent analysis suggests that UNI may be in a bullish position, supported by the decrease in selling pressure and the establishment of a strong support around $4.
The analysis suggesting these trends was presented by the user @ali_charts on their X account (formerly Twitter).
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
Ali points out that, after facing significant selling pressure in the recent past, the situation is changing for UNI. It has managed to establish support around the $4 mark, indicating increased confidence among investors at this price level.
A key indicator of a potential surge in institutional and whale interest in UNI is the increase in the number of transactions involving it.
Which suggests that larger investors and whales are strategically considering their moves in anticipation of a possible price rally in Uniswap.
One statistic shows that approximately 87.56% of UNI investors hold their assets in an ‘Out of the Money’ position, indicating that the current price of UNI is below the price at which they acquired the cryptocurrency.
This data can be interpreted as a positive sign, as it suggests that selling pressure has decreased, and investors may be anticipating a price upturn.
Key Hurdles to Overcome
For UNI to confirm its bullish trend, it must overcome two key resistance levels: $4.23 and $4.45. These levels represent significant buy walls, with 7,000 addresses buying 14.24 million UNI at $4.23 and 2,000 addresses acquiring 10.28 million UNI at $4.45.
If UNI manages to surpass these barriers, it could pave the way for a more pronounced bullish period.
According to Ali, the accumulation by whales and the renewed investor confidence could trigger a bullish rally for UNI. However, it must first deal with these resistance levels and solidify its upward trend.
The cryptocurrency’s performance in the coming days could set the course for its short and medium-term outlook. We will see if it can capitalize on this bullish momentum and confirm its upturn.