- UNI struggles below $6 despite strong whale accumulation over the past eight weeks.
- Recent on-chain metrics show weak network-wide demand and short-term profit-taking.
- Key support at $4.73 is crucial for confirming a bullish reversal.
Uniswap’s UNI has been struggling to maintain momentum despite growing whale interest. While many altcoins surged in early January, UNI stalled under $6. The recent ‘UNIfication’ proposal brought hope for a bullish movement, yet the token failed to follow through. Even strong actions like the 100 million UNI burn and fee adjustments could not spark a rally. Traders now watch price charts closely, weighing whale accumulation against weak market response.
Whale Activity and Market Dynamics
Uniswap showed strength a month ago as the ‘UNIfication’ vote gained traction. The proposal passed comfortably on December 25, signaling strong community support. Investors expected bullish outcomes, but market reaction fell short. Even with Uniswap Labs turning off frontend fees and enabling fee switches on supported protocols, UNI remained sluggish. Crypto analytics platform Santiment highlighted that the top 100 largest wallets kept buying.
Over eight weeks, these whales accumulated 12.41 million UNI tokens. Historically, such accumulation often triggers bullish trends. However, recent price action did not reflect this expectation, showing the market’s hesitation. Short-term market metrics also painted a cautious picture. The 180-day mean coin age dropped sharply, while dormant circulation spiked on December 26. These movements indicated previously idle tokens entered circulation.
Yet, the mean coin age has not started climbing, suggesting accumulation across the network remained weak over the past two weeks. The 180-day MVRV ratio stayed deeply negative, signaling a lack of long-term profit. Shorter-term MVRV briefly entered positive territory, pointing to small-scale profit-taking. This pattern shows that even with whale purchases, overall demand has been insufficient to push prices above $6.
Key Price Levels and Trader Insights
UNI faced clear resistance at $6 after briefly breaking the level in December. Daily price trends appeared bearish, reflecting sporadic buying pressure despite whale accumulation. The token currently trades below its 20 and 50-day moving averages. A drop under $4.73 could confirm the bearish bias, serving as a warning for traders.
Investors tracking top wallet activity may find this level crucial. Buying above $4.73 without stronger network support could increase risk. Cautious traders might prefer waiting for more signs of strength before entering positions. Patience can pay off, as consolidation phases often precede meaningful breakouts.
Looking forward, the combination of whale accumulation and supportive on-chain metrics suggests potential upside. The challenge lies in converting this interest into broad market conviction. Price may continue fluctuating under $6 unless demand from retail and short-term holders strengthens.
For now, Uniswap faces resistance below $6 despite growing whale purchases. Strong accumulation by top wallets shows confidence, but market-wide follow-through remains weak. Traders should monitor key support and resistance levels closely while assessing short-term indicators. A breakout may still occur, but investors must remain patient and watch for confirming signals before committing heavily.
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