Major Support at Risk as Uniswap Team Wallet Transfers $9.15M to Coinbase

The cryptocurrency market experienced a notable rebound mid-week, with Bitcoin climbing from $63,424 to $68,252. Accompanying this surge, the Uniswap price analysis shows a quick reversal from multi-month support at $7.

Cryptocurrency prices remained largely stable on Wednesday evening, as the total market capitalization stood at $2.41 trillion, showing a slight increase of 0.08% over the past 24 hours. However, the market experienced a downturn of 3.03% over the last seven days.

Bitcoin price encountered a downturn on Wednesday evening, trading at $66,833, with a loss of 0.07%. Over the past seven days, BTC showed a loss of 2.07%.

Ethereum price showed a minimal gain on Wednesday evening, trading at $4,845, showing an increase of 0.04%. Over the past seven days, ETH showed a loss of 0.04%.

Among the top 20 cryptocurrencies, Solana showed the highest gain, surging by 6.06%, while XRP showed the steepest loss, decreasing by 1.07%.

The cryptocurrency market experienced a notable rebound mid-week, with Bitcoin climbing from $63,424 to $68,252. Accompanying this surge, the Uniswap price analysis shows a quick reversal from multi-month support at $7.

This bullish turnaround uplifted the asset by 10% to trade at $7.734, while the market cap jumped to $4.63 Billion. However, concerns of a potential correction have emerged following a substantial deposit of UNI tokens by a wallet associated with the Uniswap team.

Major Support at Risk as Uniswap Team Wallet Transfers $9.15M to Coinbase

Recent data from Spot On Chain reveals a notable transaction involving a wallet associated with the Uniswap team. The wallet deposited 1.19 million UNI tokens, worth approximately $9.15 million, into Coinbase earlier today.

This #Uniswap team-linked wallet deposited 1.19M $UNI ($9.15M) to #Coinbase 2 hours ago.

The wallet received 9M $UNI from @Uniswap in 2020 and has deposited 7.17M $UNI ($58.5M) to Coinbase at ~$8.16 since July 4, 2024.

The remaining 1.83M $UNI ($14M) may be deposited away soon.… https://t.co/9Ve2A3GQl4 pic.twitter.com/y5i3qdpkKj

— Spot On Chain (@spotonchain) July 27, 2024

This wallet, which initially received 9 million UNI tokens from Uniswap in 2020, has been actively trading. Since July 4, 2024, it has offloaded 7.17 million UNI, amounting to $58.5 million at an average price of $8.16 per token. This activity leaves a remaining balance of 1.83 million UNI, valued at around $14 million, which might also be liquidated soon.

While the UNI price finds support at a major accumulation level, this heavy transaction raises concerns about further downfall. However, a closer look at the technicals suggests that UNI is at strong support and could trigger a bounce soon.

Uniswap Price Analysis: Triangle Formation and RSI Suggest Uptrend

The Uniswap price analysis in the daily chart shows that this asset is strictly trading within two converging trendlines. The lower trendline has been intact since October 23, providing dynamic support, while the upper resistance trendline, established on May 24, has formed a triangle pattern.

In theory, this chart setup is known to lead to a sideways for the prevailing trendline to regain momentum before the next directional move. On July 25th, the UNI showed another reversal from the lower trend, signaling a bull cycle within the triangle.

From the price action, UNI price encountered a breakout from the $6.2 support zone in June, leading to a rally that encountered resistance at $8.2. Following this, the price dropped and found support at the mentioned level again.

Now, the price action shows a double bottom formation at $7, which aligns with the Fib retracement level of 0.618. This level has acted as a strong support throughout 2024, and a breakout from this level could lead to a rally towards Fib retracement at 1.272, offering a target of $10.

On the other hand, a failure to hold this support could lead to further drops towards Fib retracement at 0.382, targeting $5.3.

The RSI on the daily chart shows a reading of 43.56, indicating that the asset is still within the oversold zone. However, a bullish divergence is present, suggesting a potential trend reversal and a possible rally in the upcoming

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