Uniswap Price Defies Institutional Selling for a $30 Breakout Rally

During Friday’s U.S. market session, the crypto market witnessed a surge in buying pressure as Bitcoin reclaims the $100k level. Following the bullish momentum, most major altcoins, including $UNI, bolstered key breakouts and opportunities for higher rallies. In addition, the Uniswap price managed to defy institutional selling and showcase its escape from 35-month accumulation.

According to CoinGecko, the $UNI price trades at $17.9 with an intraday gain of 19.45%. Meanwhile, the asset’s market cap holds at $10.7 Billion, and the 24-hour trading volume is at $1.7 Billion.

Key Highlights:

• The Uniswap price breakout from the cup and handle pattern sets a potential surge to $30.
• The $UNI price rally could witness in-between resistance at the $23 and $28 levels.
• The ADX indicator surged to the overbought region, indicating a need for a temporary pullback for buyers to regain buying momentum.

$UNI Tokens Witness Institutional Sell-Off, Yet Uniswap Price Surges

Union Square Ventures (USV), a prominent investment institution associated with Uniswap, has begun offloading its $UNI token holdings. Recent blockchain data indicates that USV transferred 473,000 $UNI, equivalent to $7.68 million, to Coinbase Prime.

Initially allocated 15.28 million $UNI tokens during their 2020 investment in Uniswap, USV retains a significant holding of 12.78 million $UNI, valued at approximately $204 million. This move comes shortly after Variant Fund reportedly sold its $UNI tokens, signaling a potential trend among institutional investors in rebalancing their Uniswap-related portfolios.

在 Variant Fund 出售了 $UNI 后，又一个 Uniswap 的投资机构开始出售 $UNI：@usv 在半小时前将 47.3 万枚 $UNI ($7.68M) 转进 Coinbase Prime。

USV 在 2020 年通过投资获得了 1528 万枚 $UNI 分配，他们目前仍然持有高达 1278 万枚的 $UNI ($204M)。https://t.co/i7JOONtZMI

本文由… https://t.co/QRFgEpi9Ie pic.twitter.com/0E0MCCPkJP

— 余烬 (@EmberCN) December 6, 2024

Generally, such large-scale transfers put downward pressure on the asset and act as an initial sign of a major market top. However, the Uniswap price neglected the selling pressure and gave a massive breakout from the $17 neckline of the cup and handle pattern.

Overbought ADX Hints Potential Dip Before $30 Rally

From the early November low of $6.6, the Uniswap price recorded a dynamic rally to $18.1, registering 173% growth. The recovery in the daily chart offers a bullish breakout from the neckline of the C&H pattern, developing since January 2022.

A candle closing above the $17 breached level could buyers with suitable support to drive their next leap. However, the momentum indicator ADX (Average Directional Index) spiked to 58%, indicating the current recovery has stretched significantly in a short period of time.

Thus, a temporary consolidation above $17 is likely for the asset to regain its momentum. However, if the pattern is correct, the $UNI price should chase a potential target of $30.8.