Examining why dormant Uniswap whale dumped 512K UNI to realize 76% loss

Key Takeaways

What are Uniswap’s biggest whales up to right now?

A dormant UNI whale returned after 4.5 years and sold 512k UNI, realizing a $11.65 million loss. 

What about UNI’s price action?

After getting rejected at $10.2, UNI has faced intense bearish pressure, hitting a low of $6.4. 

After Uniswap’s Unification proposal 10 days ago, UNI skyrocketed on the charts, hitting a high of $10.2 as buyers piled in to accumulate the altcoin. Shortly after though, market participants, both whales and retail, began profit-taking, triggering a downward spiral. 

In fact, Uniswap has traded within a downtrend over this period, hitting a low of $6.4. At the time of writing, Uniswap [UNI] was trading at $6.5, down 9.14% on the daily charts. 

On the back of this downtrend, investors, especially whales, have significantly increased their spending too. 

Uniswap whales are capitulating!

Uniswap has seen heightened whale activity after they stepped into the market to buy after the “UNIification proposal.” For example – Spot Average data from CryptoQuant revealed sustained big whale orders on the spot market. 

When the spot records whale orders, it alludes to greater participation from these large players. Either on the buy or sell side. 

Source: CryptoQuant

When examining these whale activities, AMBCrypto determined that whales stepped to buy on 10 and 11 November. However, after the market peaked, their sentiment and market behavior shifted entirely, leading them to sell. 

For example, on 11 November, a whale dumped 1.71 million tokens worth $15 million, accumulated between February and October. After the sale, this whale recorded $1.4 million in losses even after months of holding, according to Lookonchain. 

The whale’s decision to sell at a loss is a sign of fear of more losses after the “UNIfication” pump – A clear bearish signal. 

A dormant whale realizes $11.65 million loss

In another surprising move, a dormant whale woke up after 4.5 years and dumped his entire holdings. 

According to Lookonchain, a Uniswap diamond hand holder had kept 512k UNI since 2021. The whale accumulated UNI at its peak, when the altcoin was trading at $29.8, with these tokens worth $15.29 million back then. 

After 4.5 years and with UNI trading below $7, his holdings were only worth $3.64 million – Marking a 76% loss of $11.65 million. 

The whale’s selling at such a colossal loss indicates capitulation – A typical behavior during deep bear markets.

Further slip for UNI?

Significantly, UNI has faced intense downward pressure from bearish market participants, especially whales.

In fact, sellers have dominated the market over the last 3 days, offloading 5.6 million tokens.

Source: CryptoQuant

As a result, the altcoin has recorded positive Exchange Netflows for three consecutive days – A clear sign of aggressive spot selling.

The altcoin’s southbound momentum has strengthened too. Similarly, the Positive Directional Movement Index (DMI) made a bearish crossover, confirming the altcoin’s bearishness.

Source: Tradingview

With whale selling at top gear and momentum to the downside being dominant, UNI may be exposed to potentially more losses.

Therefore, if the trend continues, UNI could drop to $5.8, erasing all of November’s gains. To invalidate this bearishness, bulls must reclaim the middle band of the Fibonacci Bollinger bands at $7.6.

This will help the altcoin target the next resistance at $8.4.