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Uniswap [$UNI] drew fresh whale demand as a large holder accumulated a total of $2.35 million worth of $UNI as the token entered a sharp price correction.
Reportedly, the whale accumulated the $UNI tokens across five consecutive days, keeping large-holder demand active throughout the recent market downtrend.
Notably, $UNI’s price declined from its recent $7.48 peak towards the $6.02 area despite the whale’s persistent buying activity.
Therefore, the accumulation contrasted with the weakening price action as sellers continued countering the incoming demand.
$UNI shrinking exchange reserves strengthen the demand narrative
The exchange activity strengthened the demand outlook developing alongside the whale’s accumulation.
At the time of writing, $UNI’s Exchange Reserve USD had dropped 11.88% to roughly $650 million in 24 hours, reducing the value of tokens held across tracked exchanges.
The 90-day Spot Taker CVD, meanwhile, remained buyer-dominant, highlighting aggressive buyers’ continued taking in the available sell orders.
Notably, these conditions diverged sharply from the $UNI’s falling price and suggested that the underlying demand remained active despite the correction.
However, the bears still controlled the short-term price direction despite the shrinking exchange reserves and sustained taker buying activity.
Persistent exchange reserve declines could reduce the exchange-side supply further, potentially strengthening any subsequent demand-driven recovery attempt.
Top traders keep leaning heavily long on Uniswap
The derivatives’ positioning also supported the demand side as Binance top traders maintained considerable long exposure.
According to CoinGlass analytics, the long positions represented 78.69% of their positioning against only 21.31% for the shorts.
The distribution resulted in a Long/Short Ratio of 3.69, reflecting strong conviction toward an eventual price recovery.
More importantly, the market participants maintained this imbalance as Uniswap retraced from its recent $7.48 high.
Heavy long exposure could likely support recovery attempts, although additional downside would increase liquidation concerns among the leveraged traders.
$UNI correction brings the golden zone into focus
Uniswap entered a deeper corrective phase after buyers failed to extend the price advance beyond the $7.483 swing high.
The token’s price has since fallen towards the $6.016 area, bringing the 0.382 Fibonacci retracement at $5.836 into focus on the daily timeframe chart.
Notably, a decisive loss of this zone would expose the 0.5 retracement at $5.328, deepening the current pullback.
Below it, the 0.618 Fibonacci level at $4.819 marks the key golden-zone area for a potential price recovery springboard.
Furthermore, an FVG overlaps this region, providing internal liquidity that could pull the price before buyers regain control. The nearby $4.711 horizontal support adds further structural significance to the zone as well.
Meanwhile, the RSI has dropped towards 59.09 after hitting the overbought territory above 80, highlighting cooling buying pressure. Noteworthy, with both price and RSI declining together, the correction remains technically supported.
Ultimately $UNI could, therefore, test the golden zone before attempting its next price expansion. A successful hold of the $4.711–$4.819 zone would strengthen a recovery attempt towards $7.483, while losing the $4.711 level would weaken that technical outlook.
Final Summary
- Whale accumulation and falling exchange reserves kept $UNI’s underlying demand outlook strong.
- Uniswap could likely test the Fibonacci golden zone before attempting another recovery toward $7.48.