- Uniswap whale activity soared as high transaction volumes increased from 3.05 million to 21.39 million.
- UNI’s rally to a four-month high came to a halt after more than 9 million UNI poured into exchanges, increasing selling pressure.
Uniswap [UNI] has seen a huge spike in volatility over the past 24 hours as the price fluctuated between $8.83 and $9.63. The volatility came amid an increase in whale activity.
Data from IntoTheBlock shows that large transaction volumes of more than $100,000 increased from 3.05 million to 21.39 million in 24 hours. This meant an increase of more than 500%.
Source: IntoTheBlock
If these big traders were buying, it most likely caused the recent surge. For the uninitiated, whales account for 51% of UNI’s circulating supply, while retail accounts for just 16%.
So, when whale trades increase, it will definitely have an impact on volatility.
Is Uniswap ready for a 30% rally?
UNI was trading at $8.93 at the time of writing. The recent rally came to a halt due to buyer exhaustion after the price hit a four-month high of $9.63.
The volume histogram bars on the one-day chart showed that buying pressure was significantly high. The Relative Strength Index (RSI) also rose to 62, indicating that buyers were behind the bullish momentum.
Source: TradingView
Despite the price replay, the Moving Average Convergence Divergence (MACD) showed that the bulls remained in control. The MACD line has turned positive next to the histogram bars.
To continue Uniswap’s upward trend, it needs more support from buyers. This could trigger a 30% rally towards the next resistance at the Fibonacci level of 1,618 ($11.60).
However, if there is no new uptick in buying activity, the uptrend will weaken. Traders should watch out for support at $7.34 as a decline below could fuel the downtrend.
Profit-taking brings headwinds
Sellers were currently in a position to trigger a resumption of bearish trends. Exchange inflow data from CryptoQuant shows that traders have sent more than 9 million UNI tokens to exchanges in the past two days.
Source: CryptoQuant
When traders deposit their tokens on spot exchanges, it shows that they are preparing to sell, which could prevent more profits.
However, there was also a spike in deposits on derivatives exchanges. This could cause a spike in volatility as traders increase their open positions on UNI.
Read the one from Uniswap [UNI] Price forecast 2024–2025
The derivatives market saw a sharp increase in the number of forced liquidations of open short positions. Data from Mint glass shows that more than $2.8 million short positions on UNI were liquidated in less than 48 hours.
Source: Coinglass
Short liquidations tend to stimulate buying activity as short sellers are forced by buyers to close out their positions. If the renewed bullish sentiment around UNI causes more forced liquidations, the altcoin could trend higher.
