Uniswap Token Shows Mixed Signals Amidst Price Rebound
Uniswap’s token (UNI) has seen a meaningful price recovery in recent months. It reached $7.5485 on July 8, marking a 67% increase from its April low. However, technical analysis hints at a possible price correction.
On-chain data reveals that UNI supply on exchanges has surged to 85.6 million, the highest since June 5. this rise from 82.1 million last month adn a year-to-date low of 69.27 million suggests holders might be gearing up to sell, wich could lead to a price dip. Despite this, the network’s token price has rebounded over the past three months, but technical indicators suggest a potential pullback. Uniswap (UNI) rose to $7.5485 on July 8, up 67% from its lowest level in April, valuing it at $4.7 billion. on-chain data shows UNI supply on exchanges climbed to 85.6 million, the highest level as June 5. This is up from 82.1 million last month and a year-to-date low of 69.27 million. rising exchange balances typically signal that holders are preparing to sell, increasing downside risk. UNI exchange holdings | Source: santiment On the positive side, Unichain, the layer-2 network launched in march, continues to gain traction. Its protocols handled over $366 million in transactions in the past 24 hours, contributing to a 30-day volume of $6.23 billion, making it the third-largest layer-2 DEX network. Unichain’s DeFi total value locked has continued gaining momentum. It rose by over 28% in the last 30 days to over $1.17 billion.This makes it significantly larger than Cardano (ADA), a popular blockchain with less than $350 million in assets. Unichain’s total transactions have continued rising in the past few months. Its transactions rose by 42% in June, making it one of the fastest-growing chains in the crypto industry. Another bullish signal: whale holdings of UNI have surged 58% over the past 30 days to 5.69 million. Public figure investors increased their holdings by 1,162% to 176,748 UNI,while the top 100 addresses grew their balances by 16% to 812 million UNI. Uniswap price chart analysis UNI price chart | Source: crypto.news The daily chart shows that UNI has dropped from its 2023 high of $19.44 to the current $7.53. It remains below the 23.6% Fibonacci retracement level of $8.10. The MACD indicator is signaling a bearish divergence, and the price has formed a rising wedge, a bearish chart pattern with ascending, converging trendlines. As the pattern nears confluence, a downside breakout is becoming more likely. If this happens, the next level to watch will be at $4.60, its lowest level this year, which is about 40% below the current level.
