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Cumberland has made headlines by dumping a massive 989,520 UNI tokens, equivalent to approximately $16.73 million, raising concerns in the crypto community.
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With recent trading activity indicating inflows of around $3.5 million worth of UNI, it appears market sentiment is shifting towards caution.
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The significant sell-off has led to suggestions that the UNI price could drop as much as 20% if it fails to hold critical support levels.
Cumberland’s massive sell-off of UNI tokens raises questions about market stability as inflows indicate waning investor interest.
Whale sells $16.73 million UNI tokens
On December 10, data from whale transaction tracker Lookonchain confirmed that the professional trading firm, Cumberland, offloaded 989,520 UNI tokens valued at a staggering $16.73 million. The decision to sell these substantial holdings reflects a broader trend in investor sentiment, particularly among whales.
These transactions occurred across multiple centralized exchanges, notably Binance, Coinbase, OKX, and Robinhood. Furthermore, Cumberland’s actions were reportedly timed with a 10% drop in the UNI price, heightening fears of further price corrections.
Currently, UNI is trading around $15.65, having declined over 11% in just 24 hours. Analysis from COINOTAG indicated that other large holders are also relocating their funds to exchanges, potentially indicating preparation for sell-offs.
As noted in the Spot Inflow/Outflow reports, exchanges have documented a modest $3.5 million in asset inflows, which traditionally signal upcoming sell pressure.
Source: Coinglass
In the context of cryptocurrency trading, “inflow” signifies the transfer of assets from wallets to exchanges. This trend may indicate an impending sell-off and foreshadow potential price declines. However, the recent inflow volume has been eclipsed by outflows, suggesting that many long-term holders continue to back UNI, potentially mitigating further price drops.
UNI technical analysis and key levels
Recent technical analysis conducted by COINOTAG reveals that UNI has reached a pivotal support level at $15.30 due to the ongoing price downturn. This price point has created a significant “make-or-break” scenario for the altcoin’s future trajectory.
Source: TradingView
As the market reacts, UNI could experience two critical outcomes based on its current price behavior. If the altcoin successfully maintains its position above the $15.50 threshold, it may potentially rebound, aiming for a 30% increase to reach $20.50.
Conversely, should UNI fail to sustain this key support and close a daily candle below $14.60, a decline of 20% to around $11.10 could occur in the short term.
Conclusion
The recent actions by Cumberland and subsequent market behavior raise significant questions about the future of UNI and overall trader sentiment. With critical support levels tested, stakeholders should remain vigilant, as current indicators may suggest varied future price trajectories.
