cryptonewsz.com
On December 18th, Wednesday, the crypto market witnessed a surge in selling pressure following the U.S. Federal Reserve’s decision to cut interest rates by 25 bps to 4.25-4.5%. Thus, the pioneer digital currency, Bitcoin, dropped 5%, triggering renewed selling pressure in most major altcoins, including $UNI. The correction trend in Uniswap price accelerated with whale selling hints of potential breakdown below $10.
According to Coinmarketcap, the $UNI price trades at $15.05 with an intraday loss of 7.2%. Consecutively, the asset’s market cap drops to $9.03 Billion, and the 24-hour trading volume is at $879.6 Million.
Key Highlights:
- A crypto whale recently transferred over a million $UNI tokens to Binance, raising the risk of potential correction ahead.
- The formation of a double-top reversal pattern plunged the Uniswap price from $18.9 to $14.8, registering a weekly loss of 21.5%
- The $14 level, backed by a 200-day exponential moving average, creates strong support for crypto buyers.
Uniswap Price Correction Looms as Whale Offloads 1.495M $UNI
In a recent tweet, EmberCN highlights a significant transaction of 1.495 million $UNI tokens, valued at approximately $24.39 million, transferred to the Binance exchange.
The associated whale wallet had previously withdrawn the same amount of $UNI tokens from Binance between July and September at an average purchase price of $7.69 per token. With the current price of $UNI, the whale now stands to make an impressive 108% profit.
The potential sell-off could further bolster the bearish momentum in Uniswap price as whale activity significantly, including the market sentiment. As such transactions are often recorded ahead of likely price tops, the $UNI coin could drives a prolonged correction phase.
Double-Top Formation Threatens $10 Breakdown
In the last two weeks, the Uniswap price recorded two sharp reversals from the $9 resistance, signaling the formation of a double-top pattern. The chart setup resembles the letter ‘M”, indicating an intense selling pressure from above.
Amid the current market correction, the $UNI price could plunge 5.5% to challenge the pattern neckline support at $14. A potential breakdown below this level will accelerate the selling pressure and may force a 40% downfall to hit $8.57.
On the contrary, if buyers defend $14 support, the price could drive a short consolidation to recuperate the prevailing buying momentum.