Can Uniswap Regain $6 After Whales Acquire 9 Million UNI at a Discount?

Uniswap has faced a decline after its rejection at the $10 mark last month, with the token continuing downward and reaching a price of $5.3. As of the latest updates, Uniswap [UNI] is trading close to $5.5, reflecting a daily increase of 2.1%. This minor uptick follows a drop below its Parabolic SAR, indicating strong bearish sentiment. However, this recent cooldown has created a promising entry point for larger investors.

Key Takeaways

Uniswap (UNI) continues to experience downward pressure, recently trading around $5.5.
Whales have stepped in to purchase nearly 9 million UNI tokens at discounted prices.
A bullish crossover on the Relative Vigor Index indicates possible early signs of a rebound, but bearish control remains.
Buyer commitment will determine if UNI can push past $6.06 or if it will retest lower levels like $5.3 again.

Can Uniswap reclaim $6 after whales grabbed 9mln UNI at discount?

Whale Activity Increases as UNI Drops in Price

As Uniswap's price fell to $5.3, larger investors, referred to as whales, took the opportunity to purchase the altcoin at a significantly reduced price. In the last 24 hours, top holders of UNI accumulated 8.96 million tokens while selling only 1.4 million tokens.

Uniswap whale transfer

Source: Nansen

This buying frenzy resulted in a Positive Balance Change of over 7.5 million tokens among this group, as per data from Nansen. Furthermore, Lookonchain reported a significant whale withdrawal, with a wallet identified as 0xb5E4 withdrawing 823,368 UNI valued at around $4.72 million from Binance and Bybit within a five-hour timeframe. Prior to this, the same whale sold 2.818 million UNI during the Unification-induced rally. Such movements are often signs of renewed confidence among larger holders, as increased whale purchases typically support early attempts at price rebounds.

In contrast, exchange flow metrics also indicate accumulation patterns.

Uniswap spot netflow

Source: CoinGlass

According to CoinGlass, UNI experienced $17.05 million in inflows compared to $17.32 million in outflows within a 24-hour period, resulting in a negative net flow of approximately $269,000, which represents a 39.6% decrease. A negative net flow is typically consistent with accumulation in the spot market.

Is a Rebound Possible for UNI?

Recent data suggests that UNI is showing early signs of a potential rebound, with buyers stepping in at lower price points. This price movement aligns with a bullish crossover on the Relative Vigor Index (RVGI), which recorded -0.1140. Such a crossover often indicates a gradual improvement in upward momentum.

UNI RVGI & SAR

Source: TradingView

However, the RVGI remains in negative territory, suggesting that bearish sentiment still controls the market. In this context, the commitment of buyers will significantly influence UNI’s forthcoming movements. Should demand continue, UNI might attempt to break above its Parabolic SAR at $6.06 and possibly target $6.7. On the other hand, if demand wanes, there could be an opportunity for sellers to take over, potentially driving UNI back to $5.3 before making another recovery attempt.