A significant Uniswap whale has demonstrated confidence in the token's prospects by making a substantial purchase during market weakness. According to reports from AMBCrypto, the whale spent $1.03 million to acquire 299,454 UNI tokens, bringing its total holdings to 763,061 UNI worth $2.7 million. This accumulation comes at a time when UNI has been trading within a descending channel since breaching the $4 level a week ago, with the altcoin dropping to a low of $3.3 before rebounding slightly. The whale's purchase indicates renewed confidence despite the broader market weakness affecting UNI.
Market demand for UNI has shown gradual and sustainable recovery signs, as reported by CryptoQuant data. Uniswap has recorded negative Exchange Netflow for four consecutive days, with the current netflow at -1.1k UNI, a significant improvement from -460k the previous day. Over the past week, exchanges have recorded positive netflow only once, indicating sustained buying pressure. The Exchange Supply Ratio dropped to a two-week low of 0.088, suggesting buyers have returned with strength and accumulated significantly. Exchange data shows sustained outflows and a drop in supply, indicating that buyers are actively accumulating UNI despite the weak market conditions.
Despite recovering demand, UNI's technical indicators suggest the market remains structurally weak. According to AMBCrypto analysis, the altcoin remains below its momentum moving average and positive feedback of the moving averages, indicating downside risk remains stronger than upside movement. The Relative Strength Index (RSI) sits around 50 while the signal line sits at 60, suggesting sellers remain extremely active. Under current circumstances, UNI is highly likely to continue trading between $3.2 and $3.6, but if whale-driven demand strengthens, the token could flip the moving average at $3.6 and eye $4 resistance. The token faced resistance near $4.3 in early May, with a bearish higher timeframe trend remaining in place.
