- Number of bearish large investors in UNI has grown significantly, and they have begun selling the asset
- On-chain metrics revealed a decline in the total value locked and fees generated as sentiment changed
In the last 24 hours, UNI has seen an 11.95% decline across the market. This, as the larger sentiment turned bearish. And yet, this fall may have been likely driven by whales in the market.
That’s not all though as AMBCrypto’s analysis revealed that beyond the whales, other market participants also reduced engagement with UN – A possible factor precipitating a price drop.
Whales begin selling UNI
There’s been a considerable difference in the number of bulls and bears in the market, according to IntoTheBlock, with 12 bulls to 23 bears in the last 24 hours. Bulls and bears, in this case, are categorized as addresses holding up to 1% of UNI’s supply that have bought or sold the asset on a given day.
When the disparity is high, the market tilts in favor of large holders. With 11 more bears in the market, the trading volume was dominated by this group, contributing to the 11.95% price decline.
A further analysis showed that this market cohort traded 11.98 million UNI within this period, totaling $136.4 million – Comprised mainly of large sell-offs in the market.
Source: IntoTheBlock
This bearish sentiment extended beyond the whales, as liquidity providers are beginning to sell too. Needless to say, UNI usage has dropped.
Broader market aligns with bearish mode
The broader market, according to AMBCrypto’s analysis, turned bearish on UNI, with two metrics —Total Value Locked (TVL) and fees generated — falling at the same time.
TVL, which represents the amount of an asset deposited into liquidity pools, has dropped for UNI, falling from $5.937 billion to $5.584 billion. This suggested that market participants are beginning to unlock their UNI, selling it off.
Source: DeFiLlama
During this period, transaction fees declined, dropping from $9.24 million worth of UNI on 20 January to its press time value of $4.49 million.
This hinted at low trading activity during this period, accompanied by a bearish undertone in the market.
Steady adoption of UNI
Despite the bearish sentiment, however, the number of unique traders, identified as distinct UNI addresses involved in transactions, has remained steady. These addresses have ranged between 88,700 and 94,700 – Demonstrating consistent activity.
If the number of active addresses exceeds this range, a hike in trader participation could influence UNI’s price positively, driving upward momentum.
For now, this active cohort has helped stabilize UNI’s price and prevent a sharper decline.
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