Uniswap’s price has taken an interesting turn as a major cryptocurrency whale bought around 1.7 million UNI tokens worth $15.54 million in 4 days. The purchase, made through withdrawals from Binance, is a sign of increased investor confidence in UNI.
Along with this, the Uniswap v4 launch has brought optimism, especially with its efficiency improvements and cost savings. All of this is a big moment for the DEX and could mean big for DeFi.
Whale Accumulation Indicates Growing Interest
On February 7, 2025, blockchain analytics platform Lookonchain reported that a whale had withdrawn 1.7 million UNI tokens from Binance between February 3 and February 7, 2025. This accumulation, valued at around $15.54 million, marked one of the most significant UNI transactions in recent weeks.
A giant whale is accumulating $UNI! This whale has withdrawn a total of 1.7M $UNI ($15.54M) from #Binance in the past 4 days. [image]
Historically, whale transactions of this size have been watched closely as they often mean confidence in an asset’s future price. The timing is also notable as UNI’s price went up from $9.14 on Feb 3 to $9.17 on Feb 7, according to CoinGecko. While this is a small price move, the whale decided to move such a big amount from the exchange, so they would prefer to hold rather than trade immediately.
The market reacted fast, with UNI’s volume on Binance up 12% in 24 hours after the whale’s first withdrawal. UNI/USDT volume went up 5% on Feb 4, and UNI/BTC went up 3%, indicating increased trading.
Technical and On-Chain Insights Support Bullish Sentiments
UNI’s technical indicators at the time of the accumulation reflected a bullish trend. The Relative Strength Index (RSI) rose above 70 on February 6, signaling that the asset was approaching overbought conditions but has fallen below 50 in the recent trading session. UNI is still on an upward trajectory. Additionally, the Moving Average Convergence Divergence (MACD) indicator registered a bullish crossover on February 5, with the MACD line moving above the signal line—typically a sign of continued upward momentum. [image]
UNI/USD weekly chart. Source: Lookonchain
Another key metric was the increase in UNI holders, which grew by 2% over the past week, reaching 306,000 unique wallet addresses, according to Etherscan data. This rise in holders suggests broader market interest and a potential expansion of UNI’s user base.
Looking ahead, the trading trajectory for UNI seems to hinge on its ability to maintain key support levels and break through resistance points decisively. Market analyst CW from platform X recently projected a more optimistic scenario where UNI’s first target price could hit $20.
Uniswap v4 Launch Enhances Efficiency
Beyond whale activity, Uniswap’s v4 has been the talk of the town. Launched on Jan 31, 2025, the upgrade brought several improvements to trading efficiency and costs. One of the biggest is a huge reduction in gas fees compared to v3.
According to Uniswap Labs CEO Hayden Adams, creating a liquidity pool on mainnet with v3 required 5,165,447 gas, which cost around $57.42. With v4, that same action now costs 431,860 gas, or around $4.63. Fewer gas fees mean the platform will be more attractive to liquidity providers and traders and could increase activity on the network. [image]
Just created new Uniswap v3 and v4 pools on Ethereum mainnet to demonstrate the gas efficiency. v3: 5,165,447 gas ($57.42) v4: 431,860 gas ($4.63) [image]
Uniswap v4 also supports multiple chains: Ethereum, Polygon, Arbitrum, Base, Binance Smart Chain, and Avalanche. This means the upgrade will make Uniswap stronger in the DeFi landscape with a more efficient trading experience.
Based on the observed and anticipated market behaviors, UNI might first aim to test the $12 resistance. Success in breaching this level could pave the way for a rally toward $16, while failure might lead to a retest of support levels at $9 or $8, depending on broader market trends and investor confidence.