Uniswap (UNI) Approaches Key Support at $3, Traders Accumulate

Uniswap (UNI) is currently approaching a pivotal support level at $3, a price point that has historically acted as a strong floor for the token since December 2020. This level has been instrumental in preventing further price declines during several instances, notably in mid-2022, late 2023, and Q4 of 2024. Each time UNI has touched this threshold, it has bounced back with significant upward momentum, indicating a potential for a bullish reversal.

Technical indicators, including the MACD, suggest that while there may be short-term bearish pressure, the potential for a bounce back at this support remains strong. If the price stabilizes and begins to rise after touching $3, it may indicate a bullish convergence, marking another opportunity for traders. The recent price action of UNI suggests a possibility of another upward breakout similar to the double-bottom pattern observed in late 2024. If UNI manages to hold above the $3 support level, a bullish trend is anticipated, based on previous reactions at this level. However, should the price break below this key threshold, it could signal a more significant bearish trend, compelling traders to exercise caution.

The current accumulation activities by Smart Dex traders point towards a growing interest in UNI. Recent data indicates a net buying volume of $64.9K for UNI without any sales, underlining a bullish sentiment among significant market players. The average buy price standing at $6.5 reveals that traders are positioning themselves with a positive outlook, in anticipation of a recovery. This accumulation trend is bolstered by the absence of selling volume, which suggests that traders are confident in UNI’s potential to rebound.

Analyzing the distribution of UNI ownership reveals distinct trends: while whales (large investors) have increased their holdings by +2.15% over the past 30 days, retail investors appear to be taking profits, resulting in a -4.06% change for that group. Interestingly, retail ownership has seen a moderate increase of +1.71%, indicating that smaller investors are beginning to accumulate despite the market’s fluctuations. The contrasting trends between whales and retail investors could play a pivotal role in shaping UNI’s future price trajectory. Whale accumulation indicates underlying bullish pressure, which could lead to elevated prices if sustained. However, if retail investors continue to sell off their holdings, it may