While the cryptocurrency market remains shaky, a number of tokens have managed to generate quite a bit of buzz. And Uniswap’s native token, $UNI, is definitely one of them.
Of late, it appears that accumulation has ramped up noticeably, with the token’s price clustering around $7.30—an interesting development that leads us to consider some of the factors behind not only the token’s recent price action but also its potential long-term trajectory compared to some of its peers.
Strong Accumulation at $7.30: A Potential Price Floor
Traders and investors in $UNI are showing a lot of interest around the $7.30 level. Recent market data has shown that an impressive amount of accumulation has taken place at that price point. This seems to indicate that there are forces of nature on the buy side that are kind of holding up or supporting the token at this level. If the $UNI token were to move back to the $7.30 area in the near future, it would likely find that same level acting as a sort of price floor, preventing it from going much lower.
Price floors are significant in trading because they represent price levels where demand is greater than supply, causing price stabilization or even reversals. Accumulation at $7.30 seems to indicate that there are enough investors valuing that price as reasonable and worth buying, which might prevent further declines. If the market does see another dip, could we then expect a bounce off $7.30, which would create a nice psychological and technical floor for subsequent price movements?
Key Supply Clusters Highlighting Investor Sentiment
The holder distribution across various price levels tells us a lot about how $UNI holders feel. One of the most notable clusters of supply originates from around February 2024, with a cost basis of approximately $10.60. This cluster contains roughly 14 million $UNI tokens, and the holders of these tokens have shown continued engagement despite the market’s volatility.
This cluster is interesting because it displays resilience. Even though the market has been up and down, these investors keep holding. This could indicate a strong belief in the long-term value of $UNI. One might also think that these investors are just hoping that the market recovers and that $UNI regains its (previous?) momentum. But it seems these investors might expect $UNI to appreciate over time because of its (believed) higher intrinsic value.
In contrast, the most extensive cluster of supplies above the spot price is packed into the $16.81 price bucket, which has become a point of special interest. This assembly, which formed around December 15, 2023, contains an enormous 31.01 million $UNI tokens. The holders of those tokens, with a cost basis of $16.81, seem to be holding through the recent market turbulence. Those investors had better be hoping for a significant price recovery to see their $UNI back above the levels they entered.
The investors who have opted to hold through the ups and downs clearly have faith in the long-term viability of $UNI, despite all the short-term market shakiness. And this could also indicate that the big holders have no intention of selling at a loss, providing further support for $UNI as it tries to find a stable price.
Market Implications and What’s Next for $UNI
The continued collection at $7.30, together with the engagement from large supply clusters at elevated price points, creates a scenario where long-term holders are clearly still holding, and where more recent buyers are engaging with levels key to the picture of market maintenance. If $UNI can maintain the $7.30 level in the near term, it presents a picture where long-term demand should, in theory, kick in with even greater gusto.
$UNI has seen strong accumulation at $7.30, making this level a candidate for a potential price floor in case of a retest. pic.twitter.com/BYDLWE3BUU
— glassnode (@glassnode) March 6, 2025
Also, the large supply concentrations at higher prices show that there may be substantial resistance at prices above $16.81. For $UNI to break through this resistance and push up past these levels, it will need to be fueled by buying pressure from retail and institutional investors. The fact that so many tokens are held up here suggests that unless something really big happens to change sentiment, a lot of retail and institutional investors are not going to rush to the exit.
In the end, the direction of $UNI will depend on a number of things, like the condition of the wider market, the performance of the DeFi (decentralized finance) sector, and the overall demand for the decentralized exchange services that Uniswap provides. But the current accumulation at what appear to be key levels and the continued engagement of some large holders suggest that $UNI might be well set up for a potential ascent.
Conclusion: A Critical Juncture for $UNI’s Price Action
The likely foundation for $UNI’s future price rests on strong, persistent accumulation at the current price point of around $7.30 and the immediate market sentiment regarding the token at large. Should accumulation at $7.30 persist, and should price action in the token broadly correspond with recent market dynamics (most recently, a strong rally in Bitcoin), there is potential for $UNI to establish a price floor that can protect it from further downside until it ventures back into recovery mode. That road looks strewn with obstacles, however, when one considers the half-dozen or so supply clusters that rise straight up toward the $10, $12, and $14 levels.
For investors watching $UNI, these developments suggest that the token now finds itself at a critical juncture. Will it consolidate around the $7.30 level or eventually break higher? The answer to that question, and what it means for $UNI in this phase of market consolidation, will be determined over the next few weeks and will certainly involve both the market’s technical and fundamental judgments.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/uni-price-analysis-accumulation-and-key-supply-clusters-set-the-stage-for-future-price-movements/