- A wallet linked to Uniswap transferred 9 million UNI ($53.91M) to Coinbase Prime after holding for 4.5 years, sparking sell-off speculation.
- Despite short-term selling risks from the large transfer, Uniswap’s strong fundamentals include $2.9T volume and $3.6B TVL.
- UNI broke out of a falling wedge and above $5.80 resistance, signaling bullish momentum with targets of $6.50 and beyond.
Uniswap has flagged down an Ethereum address, transferring 9 million UNI tokens worth roughly $53.91 million at the time. Etherscan’s on-chain data revealed that these tokens were sent to “Coinbase Prime Deposit,” a custodial service offered by the exchange meant for institutional clients.
Notably, the wallet linked with the DeFi platform deposited the amount after 4.5 years. The address received $UNI on September 17, 2020, when the price was just $3.44.
Source: @OnchainLens
The sheer size of the transfer amount suggests the recipient is likely looking to sell or utilize these tokens through Coinbase’s institutional platform. As market watchers speculate, speculation is rife that insiders are dumping tokens in anticipation of big moves. Such large sell-offs can increase the supply on the market, potentially driving the price down due to increased selling pressure.
In another case, this could be just a routine profit-taking by early investors and advisors as part of sound financial management. This is a normal profit-taking move for maturing projects.
Uniswap’s UNI Breakout Confirmed Despite Large Transfer
While this short-term selling risk is on everyone’s radar, Uniswap fundamentals remain strong with $2.9 trillion in protocol volume and TVL above $3.6 billion.
On the price action, UNI has now broken out with strong buying activity after a period of downtrend (marked by a falling wedge in the day-old chart). Additionally, the token has also successfully overcome a key price level ($5.80) that previously acted as a formidable resistance.
This level might now act as a support. If the price stays above $5.80, experts predict the next likely targets could be as high as $6.50 and potentially more. However, a failure to break through could push the token back to $5.80, which could be a good buying opportunity if it holds as support. The overall trend for UNI looks bullish right now.