Uniswap price at risk as a rare pattern forms amid whale buying

Uniswap’s token price has rebounded over the past three months, but technical indicators suggest a potential pullback. Uniswap ( UNI ) rose to $7.5485 on July 8, up 67% from its lowest level in April, valuing it at $4.7 billion. On-chain data shows UNI supply on exchanges climbed to 85.6 million, the highest level since June 5. This is up from 82.1 million last month and a year-to-date low of 69.27 million. Rising exchange balances typically signal that holders are preparing to sell, increasing downside risk. UNI exchange holdings | Source: Santiment On the positive side, Unichain, the layer-2 network launched in March, continues to gain traction. Its protocols handled over $366 million in transactions in the past 24 hours, contributing to a 30-day volume of $6.23 billion, making it the third-largest layer-2 DEX network. You might also like: Will XRP price benefit from a short squeeze in July? Unichain’s DeFi total value locked has continued gaining momentum. It rose by over 28% in the last 30 days to over $1.17 billion. This makes it significantly larger than Cardano ( ADA ), a popular blockchain with less than $350 million in assets. Unichain’s total transactions have continued rising in the past few months. Its transactions rose by 42% in June, making it one of the fastest-growing chains in the crypto industry. Another bullish signal: whale holdings of UNI have surged 58% over the past 30 days to 5.69 million. Public figure investors increased their holdings by 1,162% to 176,748 UNI, while the top 100 addresses grew their balances by 16% to 812 million UNI. Uniswap price chart analysis UNI price chart | Source: crypto.news The daily chart shows that UNI has dropped from its 2023 high of $19.44 to the current $7.53. It remains below the 23.6% Fibonacci retracement level of $8.10. The MACD indicator is signaling a bearish divergence, and the price has formed a rising wedge, a bearish chart pattern with ascending, converging trendlines. As the pattern nears confluence, a downside breakout is becoming more likely. If this happens, the next level to watch will be at $4.60, its lowest level this year, which is about 40% below the current level. You might also like: HBAR price nears rebound as key Hedera metric recovers

Source: crypto.news