Today, on March 5, 2025, Uniswap (UNI) has experienced an 8% increase in price. However, despite this positive movement, the sentiment surrounding UNI is bearish, with signs pointing to a potential decline in the near future. This downward pressure may be attributed to a significant crypto whale dumping UNI tokens on various exchanges.
According to reports from Lookonchain, a blockchain-based transaction tracker, Galaxy Digital, a prominent crypto whale, has deposited a total of 5.89 million UNI tokens, valued at $40.60 million, on exchanges such as Binance and OKX over the past week. This influx of tokens onto the market has raised concerns among investors and traders, leading to fears of a price drop.
Currently, UNI is trading at around $7.37, reflecting an 8% increase in price over the past 24 hours. However, despite this uptick, trading volume has decreased by 35%, indicating a lack of participation from traders and investors. This decline in volume can be attributed to the ongoing sell-off initiated by Galaxy Digital, which has caused price fluctuations and uncertainty in the market.
From a technical analysis perspective, UNI is currently trading below the crucial support level of $8. If the token fails to break above this level, experts predict a potential 25% drop, with UNI reaching $5.50 in the coming days. The chart below illustrates UNI’s recent price action and upcoming levels, highlighting the bearish sentiment surrounding the asset.
Furthermore, UNI is currently trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling a bearish trend. This technical indicator helps traders assess the market trend and make informed decisions regarding their positions.
In conclusion, the ongoing dump of UNI tokens by Galaxy Digital has the potential to exert selling pressure on the asset, further solidifying the bearish outlook. Investors and traders should monitor UNI’s price movements closely and adjust their strategies accordingly to navigate the current market conditions.
Source: Trading View