- Some technical indicators supported UNI’s bullish narrative.
- Whales are still bearish on the token as evidenced by their low long-term exposure.
Decentralized exchange (DEX) coin Uniswap (UNI) has been somewhat quiet in recent days, recording a paltry 0.86% growth over the past week, according to CoinMarketCap.
Using data from Santiment, AMBCrypto noted that the token’s unimpressive gains have kept traders away, as daily trading volumes have fallen sharply since the beginning of the month.
Is it time to accumulate UNI?
However, if a recent analysis by a prominent technology analyst is to be believed, things could get better.
Ali Martinez discovered a buy signal while analyzing UNI’s TD Sequential indicator on the 4-hour chart, which indicates an “imminent price rebound” ahead.
AMBCrypto examined UNI’s other technical indicators to confirm the merits of the aforementioned claims.
The Relative Strength Index (RSI) is inching towards neutral levels, a sign that the downtrend is tiring.
Additionally, the Moving Average Convergence Divergence (MACD) crossed its signal line, which is generally considered a bullish signal by most technical analysts.
Whales refuse to stay long at UNI
While technical indicators are flashing bullish signals, the UNI whale has not moved yet.
AMBCrypto’s analysis of Santiment data shows that large transactions involving UNI have gradually declined since the beginning of the month.
However, contrasting trends emerged across different user populations.
Addresses with balances between 1,000 and 10,000 tokens have seen their holdings decline, while groups with 10,000 and 100,000 tokens have accumulated rapidly over the past 24 hours.
As it turns out, whale investors have been negative about UNI for a long time.
The negative reading for Hyblock Capital’s Whales to Retail Delta indicator shows that whales have less long-term exposure than retail investors on Binance.
Trading volume drops sharply
Meanwhile, Uniswap continues to remain the market leader in the DEX industry. According to DeFiLlama, $5.58 billion worth of transactions were executed last week.
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This is more than the weekly volume of the second and third largest DEXs on the list combined.
That said, weekly volume is down nearly 30% from the previous 7D period, which could be cause for concern for proponents.