Bitrabo Editorial
Uniswap (UNI) price fell below $5 for the first time in 2023 on May 24. Although there was a brief recovery, critical on-chain data are indicating another impending retracement. The bears have seized control again with Uniswap transaction volumes still down when compared to mid-May figures. The question is, can the bulls put up a fight?
Uniswap Whales Take a Cautious Approach
Crypto whales have shown a decline in their trading activity on UNI. Even during the recent price resurgence, the whales remained unconvinced, which is reflected in the decline in their trading activity. Large transactions involving UNI have dropped by 21% in the past week. On May 24, whales performed 38 transactions exceeding $100,000. But at the close of May 30, only 22 counts of such transactions were recorded. This decline in market liquidity could push UNI traders to lower their prices to have their orders filled.
Bearish Traders are Looking to Sell 1.2 Million UNI Tokens
Bearish Uniswap traders are looking to offload a sizeable amount of tokens around the current prices. The Exchange on-chain Market depth chart shows an aggregate of the total buy/sell orders placed by UNI holders across various exchanges. As things stand, UNI holders have placed 1.2 million UNI tokens up for sale, while buyers have only placed orders for 1.1 million tokens. When the volume of tokens supplied on the market exceeds demand, it signals a bearish market sentiment. Currently, there is a demand shortage for more than 100,000 UNI. This means sellers may have to lower prices to fill their orders quickly.
UNI Price Prediction: Impending Retracement to $4.50?
Considering the slowing demand and bearish activity among Uniswap whales, a decline toward $4.50 seems the most likely UNI price prediction. Although, IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data suggests that UNI will have initial support around the $5 zone. If the bearish momentum prevails, the price could slide further toward $4.53 as predicted. Conversely, the bulls could invalidate the bearish UNI price prediction if it manages to break above the critical $5.20 resistance zone. But a looming sell-wall from the 5,380 investors that purchased 10.77 million UNI at an average price of $5.17 will likely prevent that. UNI could still rally toward $5.86 if the bulls breach that resistance level.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.