Uniswap Faces Selling Pressure: Could UNI's Price Surge Be at Risk?

Uniswap's Price Surge Under Threat

Will UNI's Momentum Sustain?

While a continuation of the uptrend is possible, the absence of significant demand and on-chain accumulation might signal buyer weakness.

Investor Expectations

The resistance range of $8-$8.6 could be challenging to overcome, particularly if holders aim to exit the market at break-even.

On 17 November, Lookonchain identified a wallet associated with Amber Group amassing 1.41 million Uniswap (UNI) tokens, with 1.39 million sent to Coinbase Prime, likely for custody. Such accumulation is generally positive news. Recently, UNI's price surged from $4.73 to $10.3, surpassing the $8.6 level and indicating a bullish market structure on the daily chart. However, despite an 8.9% rebound from a $6.86 dip, the $8 mark remains a resistance point.

Challenges for Uniswap Bulls

On 11 November, when UNI hit $10, a notable drop in mean coin age and a spike in age consumed metric suggested a surge in dormant tokens moving on-chain, typically signaling potential selling and price correction. While a rebound in mean coin age was anticipated, it continued to decline, indicating a lack of network-wide accumulation and weakening investor confidence. The MVRV ratio also turned negative, showing average holder losses, increasing the likelihood of selling pressure as holders seek to exit at break-even.

The exchange netflow metric for UNI showed significant inflows on 10-11 November, corroborating AMBCrypto's assessment of heightened sell pressure. On a positive note, wallets holding 10k-1M UNI have increased over the last two months, though not all whale wallets increased their holdings. This cohort's behavior remains noteworthy.

Despite the bullish daily market structure, the OBV is in a pronounced downtrend, indicating strong sell pressure. Without a rapid rise in organic demand, sustaining the rally beyond the $8-$8.6 resistance zone may prove difficult.