Will Uniswap Price Crash 32% As Whale Sends $48M UNI To Coinbase?

Key Highlights:

• 9M UNI tokens worth $47.5M transferred to Coinbase Prime after 4.58 years of dormancy.
• In 6 days, 19.21M UNI tokens ($108.5M) moved to Coinbase Prime.
• UNI price hovers at $5.37, with speculation that it may drop 32%.

A large Uniswap-linked wallet has transferred 9 million UNI tokens worth $47.5 Million to Coinbase Prime. This marks its first activity over four years, sparking speculation about potential impacts on the Uniswap price.

This large transfer and similar moves by other wallets in the past week have sparked concerns about potential selling pressure. With the market already in a bearish trend, this move could lead to a sharp decline in the UNI price, possibly dropping by 32%.

Whale Activity and Its Impact on Uniswap Price

A significant transfer of 9 million UNI tokens, valued at $47.5 Million, to Coinbase Prime has drawn attention. A previously dormant wallet has deposited UNI tokens after four years of inactivity.

This transaction is part of a broader movement totaling 19.21 million UNI tokens worth $108.5 Million in the last six days. Coinbase Prime, a platform favored by institutional traders, suggests that the wallet may be preparing to liquidate these assets. This could affect the price.

During the transfer, UNI was priced at approximately $5.23. A sizable deposit like this typically increases exchange supply, which could exert downward pressure on the Uniswap price.

This influx could trigger selling pressure and further declines if the market reacts negatively. UNI’s price is already down a trend and might experience additional downward movement.

UNI was trading near $5.37, but analysts warn of a possible 32% drop. This decline could push the price to $3.65, depending on market conditions.

The large-scale transfer, combined with a broader bearish trend, raises concerns about further price instability in the short term. Traders closely watch these developments, as continued large deposits may signal more selling pressure.

Market Sentiment and Liquidation Levels

The broader market sentiment is vital in determining UNI’s next price move. Liquidations in both long and short positions could play a key role.

If Uniswap price drops, liquidation triggers could add downward pressure, accelerating a bearish trend, especially for highly leveraged traders.

Recent data shows significant liquidation volumes for short and long positions at various leverage levels, such as 25x and 50x. A decline to $4.50, a critical support level, may trigger liquidations, pushing the UNI price lower.

However, a short squeeze could occur if the Uniswap price rises despite the large transfer. This could force traders betting against the token to cover their positions.

UNI must surpass resistance levels near $5.85 for this to happen. However, the current downtrend and resistance make a sustained bullish move challenging unless sentiment shifts.

Uniswap Price Predictions and Key Levels to Watch

The behaviour of UNI holders will significantly depend on tracking essential support and resistance points in the coming days. Previous weeks have shown multiple tests at the current support price of $4.55.

Uniswap price decline may accelerate once it drops below the $4.55 support level. If selling pressure continues, the price could fall to $3.00 or lower in the coming weeks.

The upside trend will indicate a reversal when UNI breaks above $4.55 support and pushes past $5.85 resistance. The RSI suggests that UNI is in a neutral zone, indicating neither overbought nor oversold conditions.

This means the asset could move in either direction depending on broader market trends and investor sentiment. Technical indicators such as the RSI show that UNI is in a neutral zone, with no clear signals of overbought or oversold conditions.

The Choppiness Index (CHOP) is also relatively high, indicating that the market is currently range-bound.

UNI price struggles to gain momentum as it remains in consolidation. A breakout from this pattern would be needed for a more decisive move, either upward or downward.

The following period will establish if investors can preserve their support zones while whales’ actions remain a risk for significant price decline.

The bullish market trend remains uncertain since the big transaction introduced market instability. Price shifts during short periods mainly result from institutional movements and liquidation activities, so traders and investors must stay alert.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.