Uniswap (UNI) has experienced a 4% price surge over the last three trading days, but crypto investors remain skeptical about the bullish momentum. With on-chain data showing that Uniswap holders are moving their tokens onto exchanges, could the bears be setting up a bull trap? Let’s take a closer look.
Uniswap Holders Are Loading Up Their Exchange Wallets
Glassnode’s Balance on Exchange metric reveals that Uniswap investors have been moving a significant number of their tokens onto exchanges in recent weeks. The chart below shows that the Balances of UNI deposited in Exchange wallets increased by 4.2 million tokens between Apr. 2 and Apr. 25, which represents an 11% increase in the number of tokens available to be traded on the market.
Typically, investors move assets into exchanges to book profits in the short term. With such a sizable amount of tokens being moved into exchanges in a short period of time, Uniswap could experience some selling pressure in the coming days.
Bears Piling Up Sell Orders
According to data from IntoTheBlock, UNI holders could be looking to pile up significant sell pressure across top exchanges. The Exchange Market-Depth chart shows how active sell orders tower above the current demand, with the bears having placed sell orders for 3.4 million UNI tokens while buyers have only requested 2.7 million tokens at current prices.
This dearth of demand could culminate in downward pressure on the price of UNI in the coming days, as the market gets momentarily saturated when the supply of an asset exceeds demand. Unless Uniswap can attract significant traction soon, many UNI holders may want to lower their prices to fill their limit orders.
UNI Price Prediction: Unlikely to Beat the $5.9 Resistance
IntoTheBlock’s Global In/Out of The Money data reveals that UNI’s price must sustain the $5.32 support to prevent a bearish reversal. However, a panic sale from 13,000 holders who bought 9.4 million tokens around this price level could force a downswing. If Uniswap loses that support, holders can expect a sharp slump toward $4.7, with a cluster of 30,000 addresses holding 18 million tokens providing more formidable support in that zone.
The bulls could negate the bearish outlook if UNI breaks above $5.90. However, the resistance from the 36,000 addresses holding 61 million UNI tokens could impede the rally. If the bulls manage to breach that resistance, Uniswap’s price could rise as high as $6.50.
Conclusion
Uniswap (UNI) is currently facing a bearish outlook, with on-chain data suggesting that UNI holders are moving their tokens onto exchanges. Unless the project can attract significant traction soon, many UNI holders may want to lower their prices to fill their limit orders. However, if the bulls manage to break above the resistance at $5.90, Uniswap’s price could rise as high as $6.50. As always, investors should perform their due diligence and stay abreast of the latest developments in the crypto space.
