Uniswap UNI shows $12M exchange withdrawals yet bearish indicators threaten $6.844 support

The Directional Movement Index (DMI) indicator, with its negative directional indicator at 23.3160 surpassing the positive directional indicator at 13.6075, reinforced the pessimistic outlook for UNI, even as substantial exchange outflows were observed.

Despite UNI maintaining its position above the immediate $6.844 support level while trading near $7.05 at the time of reporting, bearish indicators continued to pose a risk to the asset's recovery trajectory. The bulls have found it challenging to retake the $7.50 resistance level, leaving the path to broader recovery uncertain.

Institutional accumulation possibilities were suggested by the considerable exchange withdrawals, although these transactions alone do not verify actual purchases. Over a six-day span, a wallet associated with Galaxy Digital moved approximately $12 million worth of tokens, reportedly pulling UNI from Binance, Bybit, and OKX into Galaxy Digital OTC and another unspecified wallet. Specific recent transfers included 263,500 UNI, valued at about $1.86 million, and another 234,000 UNI, valued at roughly $1.64 million. These large movements contribute to the narrative of potential accumulation.

Furthermore, data from CoinGlass indicated that Uniswap experienced spot net outflows of roughly $289.16K at the time of the report, which implies that deposits were less than withdrawals, potentially lessening immediate selling pressure across various trading venues. This negative reading followed a pattern of sustained outflows throughout the preceding week. In contrast, the month of September had seen significant inflow surges, with daily figures surpassing $20 million on the 18th of that month. When viewed alongside the Galaxy Digital-linked transfers, these figures point toward potential accumulation, even as UNI exhibits a weak technical structure.

The daily technical analysis for Uniswap showed enduring selling pressure subsequent to its earlier descent from the $9 area. While the asset was trading around $7.05 when the press release was issued, it managed to stay above the immediate $6.844 support. The Relative Strength Index indicator registered at 43.48 at the time, which is slightly higher than its Moving Average of 43.42; however, this modest improvement remains below the 50 threshold, signifying weak buying momentum. The ADX strength signal registered at 29.3116, which denotes a relatively strong prevailing trend.

Regarding liquidity, Uniswap's 24-hour Binance Liquidation Heatmap displayed substantial liquidity bands on both sides of the market. Specifically, considerable upside liquidity was noted in the range of $7.20–$7.30, with a notable concentration near $7.30. On the downside, liquidity clustered around $6.85–$6.90, alongside another grouping near $6.80. It is worth noting that the heatmap demonstrated more substantial liquidity bands beneath the current market price compared to those overhead.

Should the $6.844 support be breached, there is a risk of exposure to the $6.00 level, whereas recapturing the $7.50 resistance would bolster attempts at a recovery toward higher valuations. The institutional withdrawals suggest a leaning towards potential accumulation, yet the bearish technical signals continue to challenge UNI's recovery prospects. For Uniswap to solidify its recovery, it must either strongly defend the $6.844 support or manage to reclaim the $7.50 resistance; otherwise, further downward movement toward $6.00 remains a possibility.

Market participants and institutions are closely monitoring these indicators, as the interplay between large-scale off-exchange movements and technical momentum shapes the perceived risk and potential for price discovery in the digital asset space.

Why it matters

The combination of large institutional withdrawals and persistent net outflows suggests potential accumulation activity within the market. However, the prevailing bearish technical indicators indicate that the recovery remains uncertain for UNI. Regulators and exchanges are closely watching whether UNI can defend key support levels or face further downside.