Uniswap [UNI] Token Has Been Stuck in a Downtrend for Weeks

Uniswap’s [UNI] token has been stuck in a downtrend for weeks, with a fresh 2.7% drop recorded in the last 24 hours.

This sell-off currently observed stems from the lack of confidence in the market among holders, as they oppose the team’s decision.

Uniswap team moves funds—But to what effect?

According to SpotOnChain, an address linked to the Uniswap team deposited 9 million UNI, valued at $47.5 million, into Coinbase Prime.

In fact, over the last six days, four such wallets sent a total of $60.99 million in UNI to the same OTC platform.

Coinbase Prime is an exchange where institutional investors carry out over-the-counter (OTC) trades to avoid large slippage and minimize the impact on the market price.

Usually, this should be good news for UNI, as it indicates that large investors are beginning to take an interest in the asset and might increase their exposure over time.

Market reaction shows no interest in UNI

The transfer of UNI to Coinbase Prime has been met with a lack of interest from market participants, as large holders and spot traders continue to sell.

Data from IntoTheBlock reveals that selling pressure has been building up significantly among large traders in the market.

This group has sold 515,740 UNI, valued at $2.74 million, into the market, and the Netflow remains positive.

Naturally, spot market traders have been selling as well. They liquidated $14.98 million worth of UNI over seven days, pushing the total selling pressure even further.

This marks one of the highest weekly sell-offs recorded by traders, highlighting the lack of interest. While the combined selling pressure from traders has affected UNI, something surprising is unfolding.

A ray of hope?

To determine how this might reflect on the chart, an analysis of the liquidation heat map can provide insight. Currently, UNI is at a crossroads, meaning the asset can trend higher or drop lower from its current level.

This determination is based on the liquidation levels positioned above and below the current price.

If UNI drops lower first, it could gather sufficient momentum to overcome resistance upon rebounding—and vice versa, if the asset trends higher first.