Uniswap Metrics Suggest a Potential Price Rally
An analyst has used various on-chain indicators to explain how Uniswap (UNI) might be preparing for a price breakout. In a recent post on X, analyst Ali discusses the potential outcome for UNI based on certain underlying metrics. One relevant indicator is the number of addresses holding UNI tokens with a net amount of unrealized loss.
Address Metrics and Selling Pressure
According to the chart provided, there are currently around 308,910 Uniswap addresses in a state of loss, accounting for approximately 87.56% of the cryptocurrency’s user base. Typically, when investors are profitable, there is a higher chance of selling pressure as they may choose to realize their profits. Conversely, a large number of holders experiencing losses could indicate a depletion of sellers in the market.
Given the significant number of addresses in the red, it is possible that selling pressure has already subsided, suggesting that UNI may not decline further—at least for now.
Institutional Interest and Large Transactions
The analyst also notes an increase in the number of large UNI transactions. These transactions refer to transfers valued at least $100,000, which are typically carried out by whales and institutional entities. The rising frequency of such transfers may indicate heightened interest from these significant holders at the current price level. This could suggest that they are either investing or positioning themselves ahead of a potential breakout for Uniswap.
On-Chain Support Levels
Ali highlights the strong on-chain support wall below the current UNI prices. Support and resistance levels are determined based on the number of addresses or investors who bought at those levels. The chart shows that there is a cluster of holders just below the current UNI prices, implying that if the asset retests these levels, there could be buying pressure.
There are two key supply walls that UNI needs to overcome to signal a bullish breakout: one at $4.23, where 7,000 addresses bought 14.24 million UNI, and another at $4.45, where 2,000 addresses hold 10.28 million UNI.
UNI Price Consolidation
Uniswap has been consolidating around the $4 level for some time without breaking upwards. However, the combination of address metrics, institutional interest, and on-chain support levels suggests that a potential price rally could be on the horizon for UNI.
Hot Take: Uniswap’s Metrics Indicate a Promising Future
Analyzing various on-chain indicators, it appears that Uniswap (UNI) is poised for a potential price breakout. The significant number of underwater addresses indicates a possible exhaustion of sellers in the market, while the increase in large transactions suggests institutional interest and confidence in the asset’s current price level.
Furthermore, the strong on-chain support wall below the current UNI prices provides additional evidence of potential buying pressure if the asset retests those levels. With these factors in mind, it seems likely that UNI could experience a bullish breakout in the near future.
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