The Uniswap Foundation’s rare transfer of UNI tokens has created significant selling pressure on the token in the past week. However, data suggests that this selling pressure may be exhausted. On-chain analyst Ali Martinez believes that UNI could be on the verge of a breakout. According to data from Intotheblock, over 87% of UNI holders are currently “Out of the Money,” meaning they have yet to realize a profit. This indicates that Uniswap’s native token may be preparing for a breakout. Martinez also highlights the increase in the number of large UNI transactions, suggesting institutional players and UNI whales are showing interest at current price levels.
While UNI has established a crucial support level at $4, there are two significant resistance barriers that it must overcome for a bullish breakout. The first barrier is at $4.23, with 7,000 addresses holding 14.24 million UNI, while the second barrier is at $4.45, with 2,000 addresses controlling 10.28 million UNI.
In other news, the Uniswap Foundation has made a rare token transfer, moving a total of 9.8 million UNI, worth approximately $40.66 million. The team behind the development and expansion of the Uniswap protocol deposited 3.4 million UNI to OKX, 3 million UNI to Kraken, and 3.4 million UNI to FalconX. This movement of a large amount of UNI has raised concerns about a potential sell-off. Despite this, there has been no significant reduction in UNI’s price, only a minor loss of 1.54% over the last seven days. The token is still holding its price above $4.
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