Uniswap’s UNI token looked like it was going to give up last week’s gains after its bearish start this week. However, it delivered a strong mid-week bounce back, pushing it to last week’s highs by press time.
UNI peaked at $6.62 on 9 July after a healthy bullish performance. However, the bears took over during the weekend and pushed it back down.
It retraced to a low of $5.45 on 12 July before UNI pulled a recovery by more than 19%. It traded at $6.28 on 14 July, securing its position above the 50-day moving average.
Source: TradingView
The bullish reversal took place right above UNI’s 50% RSI level. Its Money Flow indicator confirmed that ample accumulation backed the upside. Well, both indicators suggested that UNI had more room for growth. But the question remains- Is there enough demand to support the bulls?
UNI’s short-term outlook
UNI’s supply held by top addresses metric reveals that whales have been selling after accumulating during May’s crash. Their balances have dropped almost back to May levels. This means they have been cashing out as the price recovers.
Source: Santiment
Despite the lower balances on top addresses, the number of active addresses holding UNI increased in the last few days. The number grew by more than 400 addresses in the last three days.
In addition, the whale transaction count metric picked up a significant uptick in whale activity. There were as many as 23 transactions worth more than $100,000 in the last 24 hours of 14 July. UNI’s upside during this period suggests that most of the whale activity might be skewed towards accumulation.
Source: Santiment
The increased whale transaction count should provide a bigger price boost than UNI’s performance in the last 24 hours of 14 July. This is because some of the whales have also been cashing out.
Addresses holding between one and 10 million UNI coins have been trimming their balances, hence limiting the potential upside. Their balances dropped by 0.02% in the last 24 hours of 14 July while addresses holding between 100,000 and one million coins increased their holdings by 0.01% during the same period.
Source: Santiment
Addresses holding between 10,000 and 100,000 UNI coins added to their balances by 0.01% during the same period. Meanwhile, addresses holding more than 10 million coins remained constant.
UNI’s metrics revealed that there is not much buying pressure from the whales. This explains the limited upside in the last 24 hours of 14 July.
The same metrics reveal that addresses holding between 10,000 and one million coins accumulated UNI substantially in the last four to five days.
This explains the upside, but the outflows from addresses with one million to 10 million coins are responsible for the current friction that the bears are facing.