Uniswap v4 Launch Prompts Wintermute to Accumulate $3.7M UNI Tokens

• UNI consolidated despite the announcement of an improved decentralized exchange from the Uniswap team.
• UNI faced consistent rejection at $5.33 as the token continues to form a bearish market structure.
• The 12-day EMA fell below the 26-day EMA, driving UNI into a downward momentum.

Global algorithmic trading firm Wintermute Trading accumulated $3.7 million worth of Uniswap (UNI) tokens. According to pseudonymous on-chain analyst Lookonchain, the liquidity provider took the said action moments after the decentralized crypto exchange announced the launch of the Uniswap v4.

Yesterday, Uniswap announced the v4 launch. Although still in its early stages, the protocol via its GitHub whitepaper page, noted that the new version would offer improved models of automated market-making.

It also mentioned that this would be possible because of the better architecture and gas savings provided by the  “hooks and custom” liquidity pools.

Consistently battling previous support

However, UNI’s price reaction to the development was negligible. Data from CoinMarketCap showed that UNI hovered around $4.31. However, the 24-hour trading volume increased by 39.31% within the same period.

UNI’s upswing in March saw the price rise from $5.33 to $6.18 in the same month. However, the price, which was once a support level for the token at that time, has now been the point of rejection recently.

Although buying pressure surfaced on May 10 when the price had sunk to $4.86. Yet, the pressure was not enough to break through the bearish market structure as it faced another rejection at $5.33.

At press time, UNI had given in to intense selling pressure. This led the price to fall to $4.06 on May 10. However, UNI may be faced with another obstacle other than the bearish market structure.

This was because the On-Balance-Volume (OBV) had hit a new low as the UNI price tested new support. At this point, the OBV has matched the bearish divergence, indicating that the price may grind lower.

UNI’s downward momentum may not halt

The Moving Average Convergence Divergence (MACD) also echoed the signals shown by the OBV. As a momentum indicator, the MACD crossing below zero is considered bearish.

At the time of writing, the orange dynamic line of the MACD had crossed the blue dynamic line. This suggests that sellers were in control, and drove the MACD into a negative value,

Negative values of the MACD indicate that the 12-day EMA is below the 26-day EMA. Conversely, if the MACD value surged above zero, then it could be considered bullish.

Therefore, this current state is a sign of increasing downward momentum. In conclusion, UNI may continue to fall further, and it could be difficult to break out from the consistent rejection.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.