Uniswap Price Rebounds as Whale Invests $2M in UNI, What’s Next?
Highlights
- The triangle pattern formation drives the current sideways trend in the Uniswap coin.
- The midline of the Bollinger Band indicator provides the falling UNI price with a dynamic resistance.
- The 24-hour trading volume in the Uniswap token is $146.7 Million, indicating a 22% gain.
Amid the recent market recovery, the Uniswap price correction managed to stabilize above $7.5 support. While the price trajectory is still sideways, the long-tail rejection in the daily chart shows buyers are preventing major correction. An analysis of the daily chart shows ongoing correction assists in the formation of a bullish continuation pattern called a symmetrical triangle. Should you buy this dip?
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Uniswap Price Analysis: How the Triangle Pattern Could Signal Next Recovery Wave
UNI, the native cryptocurrency of decentralized crypto exchange has recorded an aggressive correction in the past three weeks. From the $11.96 swing high, the coin price fell 43.7% to hit a low of $6.76.
The falling price managed to find suitable support at the lower trendline of the symmetrical triangle. This chart pattern has been guiding a sideways trend in UNI token since early March allowing to recuperate bullish momentum for higher rally.
The altcoin rebounded thrice from the bottom trendline indicating a crucial accumulation point for dip buyers. The Uniswap token currently trades at $8.05, hovering above the triangle pattern to bolster its next jump.
Also Read: Bitcoin Price Analysis As BitMex Witnesses Second Largest BTC Outflow
In a significant on-chain activity observed by Lookonchain, a whale or institutional investor spent 2 million USDC to acquire 243,198 UNI tokens. The investor strategically deposited 2 million USDC into a Kraken account earlier today prior to the transaction and subsequently withdrew the UNI tokens, valued at approximately 1.96 million USD, from Kraken just 50 minutes before Lookonchain’s report.
The whale/institution spent 2M $USDC to buy 243,198 $UNI again.
He deposited 2M $USDC to #Kraken 7 hours ago and withdrew 243,198 $UNI($1.96M) from #Kraken 50 minutes ago.https://t.co/WsgHzYCDv9 pic.twitter.com/cFrmGPEZw6
— Lookonchain (@lookonchain) July 10, 2024
Adding to this, the same whale deposited 4 million USDC to Kraken and withdrew 35,983 AAVE (valued at 3 million USD) and 123,183 UNI (valued at 1 million USD). These heavy transactions as UNI price trades above crucial support indicate a higher possibility of bullish reversal.
The potential upswing could propel the asset by 26% before challenging the resistance trendline of the triangle pattern. An upside breakout from the overhead trendline will signal the continuation of the uptrend and bolster buyers to retest the $17 high.
Technical indicator
- BB Indicator: The lower band of Bollinger band indicator challenge on the downside indicates the seller remains a dominant player.
- ADX: The rising ADX slope indicates no weakness in bearish momentum so far to bolster price reversal.
Frequently Asked Questions (FAQs)
1. What is a symmetrical triangle in trading?
2. What does the term 'whale' mean in cryptocurrency trading?
3. What does the ADX tell you about market trends?
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