The Uniswap (UNI) token has recently faced significant bearish pressure, largely driven by substantial whale activity and subsequent capitulation. Following an initial price surge sparked by the "UNIification proposal," the altcoin quickly encountered intense selling, leading to a sharp downturn. This market shift highlights a critical period for UNI as large holders offload their positions, impacting its immediate price trajectory.
Whale Capitulation Drives Price Decline
Uniswap experienced a notable pump, reaching $10.2, after the "UNIification proposal" generated excitement among buyers. However, this rally was short-lived as both retail and whale investors rapidly engaged in profit-taking, initiating a downward spiral for UNI. A particularly striking event involved a whale dumping 1.71 million UNI tokens, worth $15 million, resulting in a $1.4 million loss despite months of holding. In an even more dramatic move, a dormant whale, inactive for 4.5 years, sold their entire 512,000 UNI holdings. This specific whale had initially accumulated UNI at its peak around $29.8 in 2021, leading to an staggering $11.65 million realized loss, a clear sign of deep capitulation. These aggressive sell-offs by large holders underscore a prevailing fear of further losses in the market.
Bearish Outlook and Key Price Levels
The market sentiment for UNI remains intensely bearish, with sellers dominating over recent days, offloading approximately 5.6 million tokens. This aggressive selling is further confirmed by consistent positive Exchange Netflows, indicating a strong influx of tokens onto exchanges for sale. Technical indicators also reinforce this negative outlook, with the Positive Directional Movement Index (DMI) showing a bearish crossover. Consequently, UNI's southbound momentum has strengthened, exposing it to potential further losses. Analysts suggest that if the current trend persists, UNI could fall to $5.8, erasing all gains made in November. For any hope of invalidating this bearish sentiment, bulls would need to reclaim the $7.6 level, which serves as a crucial resistance point.
