Key Takeaways
Uniswap whales appear to have resurfaced, as recent buys denote. The pulling of UNI off exchanges as the price falls below $10 could be a signal of a reversal.
Uniswap [UNI] price fell below the $10 level after staying above it for the last month. The month of August has been different from previous cycles, which have been bearish for crypto markets.
From the anomaly in August of this year, traders anticipate the dip that precedes Q4 rallies to be in September.
The first few days have had mixed sentiments, but whales could be shaping a new narrative.
Whales are pulling UNI off the exchanges
According to OnchainLens data, whales were making their way back after a period of profit-taking. A notable transaction involved the purchase of 153,975 UNI valued at $1.5 million on CoW Protocol.
The whale not only scoops Uniswap, but also Maker [MKR] and Spark [SPK]. All these funds were later moved for liquidity provision.
More analysis indicated that UNI was gradually leaving exchanges, as seen in the Exchange Netflow data. On the day, about 55K tokens had been withdrawn, about 18K more than those pulled off the previous day.
Source: CryptoQuant
The shift came after 400K UNI was sent to exchange on the 1st of September, thus the price fell to $9.35. Rising exchange outflows usually signal accumulation phases for holders.
That said, will the shifting dynamics spark a reversal?
On the charts, UNI was approaching a key accumulation zone at $8.74 that previously initiated a 40% rally. During this rally, UNI price broke above resistance at $11 and was rejected instantly at $12.25.
The instant rejection made the surge past $11 a false breakout. Yet, another angle showed that the DeFi protocol was navigating inside a range between $8.74 and the tested resistance.
With holders intensifying the accumulation process, the stage was set for a reversal to the upside. The $9.74 and $8.74 levels were set as the optimal buying zone, as the whale action denoted.
Source: TradingView
Alternatively, the altcoin could dip below $8.74 for the liquidity beneath the equal lows. Sustained stay below it could invalidate the setup.
Meanwhile, the Chaikin Money Flow (CMF) has been rising since the beginning of September. This confirmed the capital inflow into UNI despite the price continuing to decline.
However, more confirmations were needed for the reversal to actualize.
Volume surges as swaps become simpler
Ethereum [ETH] Layer 2 volume surpassed $50 billion with Unichain, Arbitrum [ARB], and Base in the lead. All the progress being made by Unichain through collaboration with others could play a huge role.
Unichain Labs partners with ed Wormhole to bring multichain tokens from main networks to Unichain. The interoperability was powered by Wormhole and aimed at making swapping simpler for their users.
Source: https://ambcrypto.com/uniswap-analyzing-unis-false-breakout-and-key-levels-to-watch/
