The last few days have seen many significant developments and updates for Uniswap (UNI). Significant in the positive sense because as far as UNI’s price action action is concerned, it was heading down until very recently.
Uniswap Labs is in the news today after it announced that Securitize will be plugging BlackRock’s tokenized treasury product BUIDL into their protocol. Due to their status as smart contracts, these tokenized treasuries would operate independently of banking hours.
The news came after Bitwise filed for a Spot Uniswap ETF a few days ago. While UNI’s price did not react to that news aggressively, the same cannot be said about the BUIDL integration news.
Hence, the question – How will UNI’s price fare onwards?
How did the price, volume react to BlackRock partnership?
UNI’s price rallied by more than 42% upon the news of BUIDL integration. UNI jumped from around $3.225 to $4.588 in just two hours, with the main movement happening immediately after the official release.
The momentum was at its peak during this hour, as seen in the MACD’s reading. However, this momentum had faded away at press time, with the same on the sell side in the short term.
Additionally, the protocol’s token has seen large transaction volumes since, with figures for the same climbing from $8.38M to $38.19M at press time.
However, the price met what every other pump in a bear market has faced so far. UNI crashed back to its initial trading levels soon after, before settling at around $3.42.
While the bulls were trying to keep the price up by buying, they lacked the initial momentum. Thanks to backing from whales, UNI exhibited what the broader market has been doing lately. While the entire market was up 0.5%, UNI was up 5% after the latest bout of correction.
Now, how were these whales involved?
What do these whales know?
According to Lookonchain, a whale who was inactive for more than 4 years woke up shortly before the news. Surprisingly, he moved about 4.39 million UNI, valued at around $15 million, to a new wallet.
Some were quick to point out that the transaction was an insider move, as the timing was just too clean. Moreover, the whale had been dormant for years, which undermined the idea of coincidence.
Another whale went long on UNI immediately after the news.
In fact, on-chain data revealed that the trader opened a buy order of 1.21 million UNI with a 10x leverage valued at $4.81 million. He was sitting at a $350k profit when the price was trading at $3.99.
UNI’s short squeeze building?
Finally, the liquidation heatmap revealed that cumulative shorts of $15 million had been built between $3.81 and $5.12. The concentration of these shorts around $4 for most exchanges hinted at a short squeeze bearing the press time bullishness.
A break above this level could cascade a squeeze that results in a 20-30% rally.
All these factors position UNI as a coin to closely monitor, but traders should exercise caution in the wake of this massive selling. Probably, a sell-the-news scenario might be unfolding.
Final Thoughts
- Uniswap rallied by 42%+ after the news of BlackRock’s BUIDL integration.
- UNI’s price pulled back from the initial move, but data highlighted a lot of positives.
