- Uniswap Exchange Flow Balance shows a negative spike, signaling a bullish price move.
- Supply Distribution reveals that one cohort of whales seized the opportunity and bought UNI dips.
- UNI's Development Activity is rising, and Supply on Exchange is decreasing, suggesting a bullish outlook.
- Investors should be cautious about decreasing Active Addresses.
DeFi token Uniswap (UNI) is trading at $7.15 on Thursday, with the Uniswap Exchange Flow Balance showing a negative spike that suggests a bullish price move. The Supply Distribution reveals that a cohort of whales has capitalized on the dip to buy UNI, and with rising Development Activity and decreasing Supply on Exchanges, the outlook for UNI remains bullish.
Uniswap sees whales buying dips amid decreasing supply on exchanges
Santiment's Exchange Flow balance for UNI shows the net movement of tokens into and out of exchange wallets. A positive value indicates more UNI tokens entered than exited, suggesting selling pressure from investors. Conversely, a negative value indicates more UNI left the exchange than entered, indicating less selling pressure from investors.
In UNI's case, the Exchange Flow balance has slumped from -76,261 to -1.57 million from July 30 to July 31. This negative spike indicates increased buying activity and decreasing selling pressure among investors.
During this event, the UNI Supply on Exchanges declined by 2.3% in one day. This is a bullish development, which further denotes investor confidence in Uniswap.
%20[17.13.23,%2001%20Aug,%202024]-638581208598533523.png)
UNI Exchange Flow Balance and Supply on Exchanges chart
Santiment's Supply Distribution metric shows that whales with 1 million to 10 million UNI tokens dropped from 354.44 million to 344.48 million from July 30 to July 31. Meanwhile, wallets holding 10 million to 100 million UNI surged from 115.28 million to 125.3 million in the same period.
This interesting development shows that the first cohort of whales could have fallen prey to the capitulation event while the second set of wallets seized the opportunity and accumulated UNI at a discount.
%20[19.00.23,%2001%20Aug,%202024]-638581207441733382.png)
UNI Supply Distribution chart
Moreover, the Santiment's Development Activity Index shows project development activity over time based on several pure development-related events in the project's public GitHub repository.
In UNI's case, the index sharply rose from 97 on July 28 to 109 on August 1. This trend has been rising since July 13 and implies that the Uniswap developing activity is high, which adds further credence to the bullish outlook.
%20[17.23.20,%2001%20Aug,%202024]-638581208062612818.png)
UNI Development Activity chart
Despite UNI whales buying amid the recent price dip, increased development activity, and a decreasing supply on exchanges, Uniswap's Active Addresses have remained low, indicating that investors should not expect an immediate price rally for the token.
%20[18.18.40,%2001%20Aug,%202024]-638581205795532643.png)
UNI Active Addresses chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin holders accumulate without fear, Ethereum struggles while XRP holds gains steady
Bitcoin long-term holders have continued to accumulate BTC consistently in the last two months. Ethereum hovers around $3,100, struggles to make a comeback to resistance at $3,500.
Bitcoin price struggles at $64,000 amid Mt. Gox funds movement, steady US interest rates and ETF outflows
Mt. Gox moved $3.1 billion worth of BTC on Wednesday. Grayscale Mini BTC ETF receives a $1.8 billion inflow on Wednesday. The FOMC decided to hold US interest rates steady, resulting in a BTC price decline.
Dogecoin, Shiba Inu, PEPE recovery depends on these three factors
Meme coins erased 5.3% of their market capitalization in the last 24 hours, down to $48.81 billion. The top three meme coins, Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE, are hit by a correction on Thursday.
AAVE price could rally if a break above this weekly resistance occurs
AAVE price faces rejection by the weekly resistance level at $107.50, as of Thursday trades slightly lower by 2.2% at $105.27. On-chain data suggest that AAVE's Development Activity is rising, and Supply on Exchange is decreasing, suggesting a bullish outlook.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.