- Popular crypto analyst Ali Martinez has highlighted an uptick in institutional and whale transactions in Uniswap (UNI), suggesting a potential trend reversal and price breakout.
- Despite strong selling pressures and 87.56% of UNI holders being “Out of the Money,” a solid support level has formed at $4, sparking optimism among investors.
In recent times, Uniswap, an Ethereum-based decentralized exchange, has experienced a substantial increase in network activity, marked by pronounced selling pressures. Ali Martinez, a seasoned crypto analyst, has shed light on these market dynamics, indicating that Uniswap might be on the cusp of a trend reversal.
Martinez’s analysis underscores that an overwhelming 87.56% of UNI holders are currently
“Out of the Money,”
a term used in crypto trading to describe a situation where the current price of an asset is less than the price at which it was purchased. This usually results in strong selling pressures. However, Uniswap seems to be defying this trend, with a solid support level forming around the $4 mark, igniting a wave of optimism among stakeholders.
Adding to this bullish sentiment is the notable increase in large UNI transactions, a clear signal of heightened activity from institutional investors and significant UNI holders. These market players appear to be making strategic moves, either investing or positioning themselves for an anticipated price breakout in Uniswap.
At the time of writing, UNI is trading at $4.16, a slight increase of 1.46%, with a market cap standing at $2.4 billion, and holding steady at its key support level of $4.
Martinez draws attention to the critical price levels that need to be watched. While $4 serves as a strong support, there are two major supply walls that UNI needs to break through to confirm a bullish trend. The first is at $4.23, backed by 7,000 addresses holding a cumulative 14.24 million UNI, and the second is at $4.45, where 2,000 addresses hold 10.28 million UNI.
In terms of potential downturns, the Relative Strength Index (RSI) suggests that a falter at the $4.02 support could lead to an 8% correction to $3.70, and increased selling pressure could potentially drive the price down to $3.35, marking a substantial 17% decline. Conversely, a surge in buying pressure that results in a closing price above $4.38 could invalidate this bearish scenario, potentially catalyzing a 15% upswing to $5.04.
This situation highlights the volatile nature of the cryptocurrency market, emphasizing the need for investors to remain alert and well-informed as they navigate these swift market changes.
