Uniswap price remained under pressure on Monday, November 4, falling for five consecutive days as whales continued dumping the token. UNI token retreated to $6.9, its lowest level since October 4, and down by 60% from its highest level this year.
Uniswap price retreats as whales dump
The UNI token dropped as on-chain data showed that a few whales dumped their tokens in the past 24 hours.
Data by Etherscan shows that one whale moved 628,406 UNI tokens worth $4.37 million to Crypto.com, one of the top centralized exchanges.
Another whale moved 186,558 UNI coins worth $1.3 million to Coinbase Pro and paid a $0.32 fee for the transaction.
Whale movement is one of the best indicators when large holders are selling their tokens and is usually a bearish sign.
Other Factors That Could Trigger UNI Crash
Uniswap’s sell-off happened even as it regained market share in terms of volume. Data by DeFi Llama shows that Uniswap handled $1.58 billion in volume in the last 24 hours, while Raydium processed $1.03 billion.
Uniswap has processed tokens worth $12.5 billion in the last seven days compared to Solana’s $7.85 billion. This performance contrasts what happened last month when Raydium had more volume than Uniswap.
According to CoinRank, Uniswap had over 13.9 million users in the last 30 days, compared to Raydium’s 90 million.
Uniswap hopes to improve its network by launching UniChain, a layer-2 network that has faster blocks, cross-chain interoperability, and a decentralized validator network. In a statement on Sunday, the developers noted that the bridging volume in its ecosystem had soared to $13 million since launch.
Uniswap’s retreat mirrors the performance of other cryptocurrencies as concerns about the upcoming US election continue. The key concern among traders is that official polls show that Kamala Harris and Donald Trump were in a dead heat, making it hard to predict who will win the election.
UNI Price Analysis: Uniswap Crashes Below Key Support levels
Technical analysis points to more downside, especially now that whales have continued to move their tokens.
On the daily chart, the token dropped below the ascending trendline, which is made up of the higher lows since August 5, a sign that bears are prevailing.
Uniswap price also slipped below the support at $7.1620, the neckline of the triple-top pattern at $8.30.
It has also fallen lower than the 200-day and 50-day exponential moving averages, which could form a death cross pattern. The last time the token formed that cross was on July 25, and it dropped by 40% afterwards.
Therefore, the path of the least resistance is downwards, with the potential target being the August low of $4.718, which was 31% below Monday’s level.
This bearish view will become invalidated if the UNI price rises above the key triple-top level at $8.30. A break above that point will signal more gains, with the next potential level being the psychological point at $10.
The post Uniswap Price Could Dive 31% as Whales Dump UNI appeared first on CoinGape.
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