By Brenda Collins
News has it that a group of popular Uniswap (UNI) whales has taken advantage of a recent price decline to make significant investments, amassing almost $15 million worth of UNI tokens. This is an interesting development in the cryptocurrency market.
These investors, and individuals owning between 100,000 and 1 million UNI tokens, systematically grew their investments between August 13 and August 21. With the market price of UNI tokens currently hovering at $4.70, the collective purchase of over 3.25 million UNI tokens by these whales has drawn considerable interest from the cryptocurrency community.
These significant holders are taking advantage of the token’s 25% price decrease. This accumulation indicates a change in the asset’s trajectory. This observed tendency also raises intriguing implications for the future price of UNI.
Industry analysts, Ryan James had predicted that the asset’s price may somewhat decrease, maybe approaching the $4 level, given the recent decline in the user acquisition rate for the Uniswap protocol. This theory is supported by the observation that the whales’ surge of new investment occurs when new user engagement is on the decline.
Uniswap Fails to Hold Grip, As CEX, Binance Regain Traction
A total of 2,220 addresses joined the market during this moment, spending a combined total of $3.53 million to buy UNI tokens at a minimum cost of $4.53. This increase in participants emphasized the possibility of downward pressure on UNI’s price as new entrants sought to purchase at a lower price.
The reported 9,940 addresses that bought 32 million UNI tokens at the high price of $5.40 continue to be a major obstacle. Freelance market watcher and analyst Ibrahim Ajibade said that this level of resistance could be a barrier for the asset to go past and counterforce any prospective price decrease.
In a market situation report, as compiled by Santiment, that Uniswap registered only 185 new addresses on August 21, starkly contrasting the earlier high activity levels hence, heightening the mystery. However, the possible fragility of the token’s current price point is further highlighted by this data.
Ajibade added that the Uniswap price can still absorb the bearish trend if only the whales maintain their buying strength. The report states that Coinbase and Binance recently regained their various market grip alongside UpBit, a major Korean cryptocurrency exchange. Analysts at BeInCrypto say that this development has caused investors to switch their attention from Uniswap and DEXs.
Historical data published on BeInCrypto shows that Uniswap Network Growth had its late drop on June 1, a few days prior to the announcement of the Security and Exchange Commission court case against Coinbase and Binance. Meanwhile, the price of Uniswap is most likely to maintain a neutral stance in days to come thus, consolidating very close to the $5 price mark.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.