Uniswap’s UNI Token Shows 15% Reserves Drop, 22.78% New Addresses Surge

Recent market activity has indicated a potential rebound for Uniswap’s UNI token. Significant whale transactions, such as the purchase of 290,212 UNI for 1,000 ETH, suggest renewed interest and positive market sentiment. This large-scale transaction, after a period of inactivity, signals a shift in market dynamics, with large players potentially influencing price action.

UNI’s exchange reserves have decreased by 15% over the last 24 hours, which hints at reduced selling pressure. A decline in available coins on exchanges typically supports the price by limiting liquidity. This fall in reserves could imply some level of support for price stability or even a potential recovery, especially if demand rises across the market.

UNI’s price chart shows signs of a potential rebound, with the price recently reaching a crucial support level and bouncing upwards over the last few days. If the price continues to hold above its current support levels, a potential upward move may occur. The price might test resistance near the upper boundary of its descending channel, with a break above $10.05 alluding to a stronger bullish trend.

UNI’s address statistics further support a positive trend. Over the past week, new addresses have surged by 22.78%, with active addresses climbing by 11.55%. This increase in active addresses indicates heightened interest and rising demand, which could lend the necessary support for a price rebound on the charts.

Liquidation data reveals that long positions are being squeezed more than short positions, with long liquidations at $12.23k compared to short liquidations at $2.17k. This suggests that market sentiment may be skewed toward bearishness, as more traders betting on price hikes are forced to liquidate. However, the hike in active addresses and falling reserves signal that demand could stabilize the price or even cause a rebound.

Despite facing liquidity challenges and selling pressure, UNI seems to be showing promising signs of a potential rebound. Whale activity, the increase in address statistics, and liquidation data indicate renewed interest in UNI. With growing investor participation, the support levels are likely to hold, potentially leading to a price recovery in the near term. Therefore, UNI might be poised for a potential upward move in the coming days, despite the liquidity constraints.