Uniswap UNI is attempting to break through the upper boundary of the horizontal channel, thanks to the recent market rally.
Nevertheless, the token could retrace to support levels if whale activity decreases and retail investors become uncertain.
The peer-to-peer (P2P) platforms of the most prominent cryptocurrency exchanges are now the most convenient and secure ways to purchase cryptocurrency with rubles. Here you will find information about P2P cryptocurrency, including where to find it and which platforms are worth investing in.
The activity of Uniswap holders is declining.
The price of UNI has been very stable over the last several weeks, staying between $6.73 and $8.35. The alternative coin is now moving towards the channel’s upper limit. But important on-chain metrics are showing red flags, suggesting a turn around could be on the horizon.
The precipitous fall in major transactions was the primary cause for prudence. The analytical platform Santiment reports that there was a 44% decrease in the number of transactions worth over $100,000 last month, and a 50% drop in larger transfers of $1,000,000 or more. During this period, there was a 48% decline in total trading volume.
Not only did whale activity drop last week, but open interest in Uniswap futures also dropped 5% to $76 million.
All open futures contracts or positions as of the current date are known as UNI Futures Open Interest. Traders are selling their positions without adding new ones when it goes down.
Prediction for UNI price: retest of channel support
The directional movement index readings from UNI support the bearish trend. The positive DMI (blue) was lower than the negative one (red) when the publication was made. As a result, the pressure to sell is far higher than the pressure to buy.
Furthermore, the Relative Strength Index (RSI) for the altcoin fell to 46.62, indicating that distribution is being favored by market participants.
The Uniswap price has the potential to drop to $7.06 and then reach the $6.73 support level if the bearish pressure becomes more intense and the trend turns downward.
To be sure, the token will have no trouble making its way to the top of the horizontal channel once the whales start actively trading again.