Uniswap risks 8% crash as Uniwap Foundation sends 500,000 UNI to exchange

Uniswap price could drop 8%, according to the technicals.
The recent move from Uniswap Foundation adds bearish headwinds for the altcoin.
On-chain metrics provide strong evidence of a further decline in UNI.

Uniswap (UNI) price currently exchanges hands at $4.09 and might be in for a correction soon as Uniswap Foundation sends 500,000 worth of UNI to OKX exchange. In total, these tokens are worth roughly $2 million at the current rate and are likely to be sold soon.

12 hours ago, Uniswap Foundation deposited another 500K $UNI ($2.15M) to #okx at $4.3.

They have deposited a total of 9.79M $UNI ($4.19M) to CEXs and Falcon X in the last 3D. pic.twitter.com/FmeC222RKh
— The Data Nerd (@OnchainDataNerd) October 27, 2023

Uniswap price might slide lower

Uniswap (UNI) price has been trading around the $4.02 support level for the last six weeks. The recent deviation below this level in mid-October was followed by a 16% rally in six days. As this quick upswing formed a local top at $4.50, things started going downhill for UNI, which knocked it down by 9.24%.

As UNI trades around $4.09, it risks a further drop, especially considering the Relative Strength Index (RSI), which seems to be getting rejected by the 50 mean level. A breakdown of the $4.02 support level could trigger an 8% correction to $3.70. A further spike in selling pressure caused by relentless selling could send UNI in a tailspin down to revisit the $3.35 support. This move would constitute a 17% crash for Uniswap price and UNI holders.

UNI/USDT 1-day chart

While Uniswap Foundation sending UNI to exchanges is potentially bearish, the technicals add credence to this outlook. On-chain metrics also paint a bearish picture of Uniswap price. The supply of UNI held on exchanges has noted a spike from 62.27 million UNI to 65.35 million UNI between September 4 and October 27. This 4.94% uptick suggests that more investors are unsure about UNI’s future and are holding their tokens on exchanges to sell should the scenario present itself.

UNI supply on exchanges

While the supply on exchanges continues to rise, Uniswap whales are offloading their holdings, which further helps the bearish stance. Wallets holding 100,000 to 1,000,000 UNI have reduced from 93.91 to 87.74 in under ten days. The 6.57% drop in the balance of whale wallets indicates but one thing – investors' lack of confidence in bulls and the performance of Uniswap price.

UNI balance of addresses

While the outlook of Uniswap price is bearish no doubt, a sudden spike in buying pressure that pushes UNI to produce a daily candlestick close above $4.38 will create a higher high. This move will invalidate the bearish outlook and potentially kickstart a quick 15% upswing to $5.04.

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