Uniswap Price Drops 20%: Can UNI Rebound to Test $14 Again?

Highlights:

• Uniswap drops 20%, showing bearish momentum with heightened selling pressure.
• Whales and team transfers drive market activity and strategic repositioning speculation.
• MACD and RSI indicate oversold conditions; a $10 support zone is critical.

Uniswap (UNI) Price experienced a decline in the past 24 hours, dropping 20.76% to $11.63.This is a big swing in sentiment for the market that has pushed Uniswap’s market capitalization up to $6.98 billion. The token traded at $14.53 earlier, fell into a pronounced downtrend throughout the session, consuming its upward momentum.

But this pullback hasn’t stopped Uniswap from surging more than 160% in the past month. It was able to move past its resistance of $16.5 ahead of reversing course. The recent sharp drop is attributed to increased selling pressure as 24 hour trading volume soared 73.06 percent to $1.41 billion. That spike in trading activity is a result of investor repositioning and market wide volatility.

Whales and Team Actions Drive Uniswap Token Activity

Recent on-chain data reveals that over 800,000 UNI tokens, valued at over $13 million, have been deposited into exchanges within two days. Additionally, a prominent whale transferred 1.49 million UNI tokens, valued at $24 million, to Binance. These movements indicate heightened trading activity and possible strategic repositioning by major holders.

Institutions have been depositing $UNI into exchanges over the past 2 days!

1/ Whale “0x59a” with a $89.4M portfolio deposited 1.495M $UNI ($24.3M) to #Binance an hour ago, securing an estimated $13.7M profit (+129%) after 5 months.

2/ @Uniswap team-related wallet “0xa37” sent… pic.twitter.com/DOa7ynLXKn

— Spot On Chain (@spotonchain) December 18, 2024

Additionally, earlier this month, Uniswap’s team transferred about 5 million dormant UNI tokens to Coinbase Prime. Speculation has begun over a potential strategic move by the team as these tokens untouched for over four years have been taken into possession.

Moreover, the chart included by analyst Ali Martinez shows a lot of on-chain activity around Uniswap’s $UNI token. More specifically, roughly 800,000 $UNI tokens, or more than $13 million, have been transferred to exchanges.

Around 800,000 #Uniswap $UNI have been sent to exchanges in the past 24 hours, totaling over $13 million! pic.twitter.com/LzpC0OVXXE

— Ali (@ali_charts) December 17, 2024

The yellow bars show the transfer of 800,000 $UNI to exchanges, which may indicate increased selling pressure. While the price (black line) remains relatively stable, the rise in exchange supply (red line) suggests heightened market activity and potential short-term volatility.

Technical Indicators Signal Growing Bearish Momentum

Uniswap price has struggled to maintain bullish momentum, retreating from recent highs and testing critical support levels. Resistance is currently seen at $13.011 and $13.155, while support lies at $12.801 and $12.654. The narrowing price range suggests potential breakout volatility in the near term.

Technical indicators further confirm the bearish momentum. The MACD shows the signal line crossing below, while the histogram remains deeply negative, indicating increasing selling pressure. Meanwhile, the RSI at 38.11 is approaching oversold territory, suggesting a possible reversal if it falls below 30.

Uniswap Price Potential Targets $10 Support or $14 Resistance

Traders eyeing the market have adopted cautious strategies. Short positions are recommended near $13.011, targeting $12.654, with stop-losses above $13.155. Conversely, long trades could be around $12.801, aiming for a rebound toward $13.155.

Analysts suggest that Uniswap could test the $10-$11 support zone if bearish momentum persists. This level serves as a psychological barrier that may attract buyer interest. On the upside, if buyers regain control, UNI could retest $14, a critical resistance level where selling pressure previously emerged.

Investors should closely monitor MACD and RSI indicators for potential trend reversals. Additionally, tracking on-chain data, such as exchange inflows and whale activity, will provide further insights into market dynamics.