Uniswap (UNI) has recently experienced a significant downturn, struggling to maintain previous gains after facing resistance at the $5.8 mark. This downward trend, exacerbated by a broader market crash, has seen UNI trade within a descending channel. Amidst this volatility, a notable shift in sentiment among large investors, particularly "whales," is emerging, signaling a potential turning point for the altcoin.
Whale Activity Signals Shifting Tides
Initially, UNI's rejection at $5.8 prompted profit-taking from whales, leading to increased sell-side volume and further downward price pressure. One specific whale's journey highlights this volatility: after panic-selling 798,734 UNI for $4.26 million at $5.33 as prices dropped, the same investor seized the opportunity during the continued decline. Demonstrating a significant shift in confidence, this whale subsequently bought back 757,684 UNI for $3.66 million at a discounted price of $4.83. Such a move by a large holder typically indicates an anticipation of market recovery, suggesting that some major players believe UNI's current low presents a buying opportunity.
Glimmers of Recovery Amidst Bearish Pressure
Beyond individual whale movements, broader market indicators for UNI also hint at a potential recovery. Buyer's Strength has notably risen, while seller dominance has decreased significantly, signaling a shift in market control. Furthermore, a consistently negative Spot Netflow over several days points to increased demand for UNI on spot exchanges, as more tokens are being withdrawn than deposited. While these are positive signs, the altcoin remains under considerable bearish pressure, trading below its key short-term moving averages. Despite a slight uptick in the Relative Strength Index (RSI), it continues to reside deep within bearish territory, suggesting that current demand, including the recent whale purchases, might not yet be sufficient to propel UNI out of its slump and reclaim critical resistance levels like $5.8.
