A major Uniswap investor has reactivated their wallet after six months of dormancy, making a significant withdrawal of 1.48 million UNI tokens, equivalent to $10.4 million, from Coinbase Prime approximately two hours ago. The wallet in question now holds a total of 3.91 million UNI tokens, valued at $27.2 million.
According to the analytic’s firm report, in two separate transactions during February and August 2024, the investor withdrew a total of 3 million UNI tokens at an average price of $6.89 per token, totaling $20.6 million. An additional 911,000 UNI tokens were unlocked from the Uniswap treasury in September 2020. These tokens were transferred to the investor’s wallet in February 2024 at an average price of $7.74 per token, with a value of approximately $7.05 million.
This latest withdrawal suggests the investor is preparing for potential market movements or capitalizing on a strategic opportunity. The reactivation of such a significant wallet underscores the investor’s confidence in Uniswap’s long-term value proposition, even amidst the current market volatility.
Market Impact
The substantial UNI holdings and recent transactions could influence market sentiment, especially considering the ongoing debate over decentralized finance (DeFi) token valuations. The investor’s actions might prompt other large holders to evaluate their strategies in light of evolving market conditions.
The 4-hour chart for UNI/USDT shows a recent bullish trend, with the price moving within an ascending channel pattern. The price has tested the upper boundary of the channel around $7.00 but faced resistance, resulting in a slight pullback to the current price level of $6.924. The Woodies CCI is currently above the 50 level, suggesting that the momentum is in favor of the bulls. However, a decrease in the CCI could indicate weakening momentum and a possible correction.
The recent price movement suggests that UNI may continue to trade within the ascending channel in the short term. Traders should monitor the key support and resistance levels closely, as a breakout could define the next major move for UNI/USDT.
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