An early Uniswap investor moved 1.37 million UNI tokens worth $12.93 million to market maker Wintermute during the recent market downturn. According to reports from AMBCrypto, these were the same tokens received from Uniswap's investor contract five years ago, making the transfer particularly significant. The transfer to a market maker during a downtrend has sparked speculation about potential OTC sales, as Wintermute often executes trades on behalf of clients, though the transfer remains unsold at press time.
UNI experienced significant downside pressure, plunging to a low of $9.02 after failing to hold the $10 support level. As reported by AMBCrypto, the altcoin was trading around $9.10 at press time, down 9.13% on daily charts. The Spot Volume rose 45% over the same period, indicating increased selling activity as investors reduced exposure. The Relative Strength Index made a bearish crossover and fell to 61, confirming intense selling pressure and pointing to potential extended weakness.
The decline to $9 support triggered significant liquidation events, with $2.89 million worth of long positions liquidated according to CoinGlass data. As reported by AMBCrypto, Uniswap recorded $385 million in outflows compared to $321 million in inflows over the past 24 hours. The Futures Netflow dropped 264% to -$63.8 million, suggesting several traders exited their positions. Additionally, the Spot market showed increased selling activity with Exchange Netflow climbing to 660k UNI and inflows surging to 1.6 million UNI.
With the recent decline, Uniswap's downside momentum remains extremely elevated, with the bearish crossover confirming intense selling pressure. According to AMBCrypto analysis, if bearish pressure persists, UNI will likely fail to hold the $9 support and drop to $8.4. However, if market conditions cool down, the altcoin may hold this level and potentially move toward $10 again. The current market conditions point to a likelihood of extended weakness given the combination of liquidation events and increased selling activity across both derivatives and spot markets.
