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Uniswap’s native token UNI is showing promising signs of recovery, driven by significant whale inflows, increased trading volume, and heightened network participation.
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Recent data reveals a shift towards institutional interest, with large transactions surging while smaller retail trades decline, indicating a market realignment.
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According to COINOTAG, “The accumulation by whales combined with rising user activity suggests a potential bullish momentum building within the Uniswap ecosystem.”
UNI rebounds with strong whale accumulation, rising network activity, and bullish funding rates, signaling potential for a breakout above key resistance levels.
Rising Network Activity Fuels UNI’s Potential Upside
On-chain metrics underscore a notable increase in Uniswap’s ecosystem engagement. The number of new addresses surged by 66.12%, while active addresses climbed 19.39% over the past week. This surge indicates renewed interest and expanding adoption, which are critical for sustaining price momentum. Additionally, the growth in zero-balance addresses points to portfolio reshuffling, suggesting holders are actively repositioning within the market. These dynamics provide a solid fundamental underpinning for UNI’s resilience amid recent consolidation.
Institutional Interest Evident Through Transaction Size Shifts
Transaction data reveals a pronounced rise in large transfers, with transactions between $10k and $100k increasing by 174.9%, those from $100k to $1m up 168.75%, and transfers between $1m and $10m surging 200%. In contrast, smaller transactions under $1k have decreased by over 20%, highlighting a decline in retail activity. This divergence suggests that institutional investors and high-net-worth individuals are accumulating UNI, positioning for potential price appreciation. Such smart money movements often precede significant market shifts, reinforcing the bullish narrative.
Technical Indicators Point Toward a Possible Breakout
UNI has been trading within a defined range of $5.50 to $7.50 for more than two months, following a break from a prolonged downtrend. The MACD indicator is converging, signaling a potential bullish crossover that could ignite upward momentum. This technical setup, combined with increasing volume and network activity, suggests buyers are gaining control while sellers are losing steam. Historically, such range-bound periods often lead to decisive breakout moves, with current data favoring an upward trajectory if the $7.50 resistance is breached with conviction.
Whale Accumulation Highlights Confidence in UNI’s Mid-Term Outlook
Over the past month, whale holdings have increased by 2.40%, while retail and investor holdings declined by 1.70% and 2.74%, respectively. This shift reflects a transfer of tokens from smaller holders to large-scale investors, a pattern commonly associated with upcoming price rallies. The concentration of UNI in whale wallets indicates growing confidence among major players, reinforcing the potential for sustained accumulation and price support in the mid-term horizon.
Funding Rate Trends Support Bullish Sentiment
The OI-Weighted Funding Rate for UNI remains positive at +0.0056%, indicating traders are willing to pay premiums to maintain long positions. This persistent positive funding rate aligns with price stability and rising volume, suggesting a market leaning towards optimism. While the rate is not excessively high, it reflects a healthy demand for longs, which could fuel further price advances if sustained. However, traders should monitor for signs of overcrowding that might precede corrections.
UNI’s Path Forward: Breakout or Continued Consolidation?
All key indicators—rising network activity, whale accumulation, positive funding rates, and technical momentum—point toward a bullish setup for UNI. Nevertheless, a decisive breakout above the $7.50 resistance level is essential to confirm a trend reversal and unlock further upside potential. Until then, UNI remains range-bound, but mounting pressure suggests that a significant move may be imminent. Investors and traders should watch for volume spikes and price action near this critical level to gauge the next phase of UNI’s market cycle.
Source: X
Source: IntoTheBlock
Source: IntoTheBlock
Source: TradingView
Source: IntoTheBlock
Source: Coinglass
