During Friday’s U.S. market session, the crypto market witnessed a surge in buying pressure as Bitcoin reclaims the $100k level. Following the bullish momentum, most major altcoins, including UNI, bolstered key breakouts and opportunities for higher rallies. In addition, the Uniswap price managed to defy institutional selling and showcase its escape from 35-month accumulation.
According to CoinGecko, the UNI price trades at $17.9 with an intraday gain of 19.45%. Meanwhile, the asset’s market cap holds at $10.7 Billion, and the 24-hour trading volume is at $1.7 Billion.
Key Highlights:
- The Uniswap price breakout from the cup and handle pattern sets a potential surge to $30.
- The UNI price rally could witness in-between resistance at the $23 and $28 levels.
- The ADX indicator surged to the overbought region, indicating a need for a temporary pullback for buyers to regain buying momentum.
UNI Tokens Witness Institutional Sell-Off, Yet Uniswap Price Surges
Union Square Ventures (USV), a prominent investment institution associated with Uniswap, has begun offloading its UNI token holdings. Recent blockchain data indicates that USV transferred 473,000 UNI, equivalent to $7.68 million, to Coinbase Prime.
Initially allocated 15.28 million UNI tokens during their 2020 investment in Uniswap, USV retains a significant holding of 12.78 million UNI, valued at approximately $204 million. This move comes shortly after Variant Fund reportedly sold its UNI tokens, signaling a potential trend among institutional investors in rebalancing their Uniswap-related portfolios.
在 Variant Fund 出售了 UNI 后，又一个 Uniswap 的投资机构开始出售 UNI：@usv 在半小时前将 47.3 万枚 UNI ($7.68M) 转进 Coinbase Prime。
USV 在 2020 年通过投资获得了 1528 万枚 UNI 分配，他们目前仍然持有高达 1278 万枚的 UNI ($204M)。https://t.co/i7JOONtZMI
本文由… https://t.co/QRFgEpi9Ie pic.twitter.com/0E0MCCPkJP
— 余烬 (@EmberCN) December 6, 2024
Generally, such large-scale transfers put downward pressure on the asset and act as an initial sign of a major market top. However, the Uniswap price neglected the selling pressure and gave a massive breakout from the $17 neckline of the cup and handle pattern.
Overbought ADX Hints Potential Dip Before $30 Rally
From the early November low of $6.6, the Uniswap price recorded a dynamic rally to $18.1, registering 173% growth. The recovery in the daily chart offers a bullish breakout from the neckline of the C&H pattern, developing since January 2022.
A candle closing above the $17 breached level could buyers with suitable support to drive their next leap. However, the momentum indicator ADX (Average Directional Index) spiked to 58%, indicating the current recovery has stretched significantly in a short period of time.
Thus, a temporary consolidation above $17 is likely for the asset to regain its momentum. However, if the pattern is correct, the UNI price should chase a potential target of $30.8.
Source: https://www.cryptonewsz.com/uniswap-price-defies-institutional-selling-for-a-30-breakout-rally/