• Dormant whale moved $54M in Uniswap (UNI) to Coinbase, triggering volatility concerns.
• Technical breakout, rising on-chain activity, and bullish derivatives hint at a $7 retest.

A major Uniswap-linked wallet has stirred the market after transferring 9 million Uniswap [UNI]—worth roughly $54 million—to Coinbase Prime following over 3.5 years of dormancy. 

Naturally, this unexpected move immediately raised concerns about potential sell pressure, especially as UNI had just begun to show signs of strength.

The timing of this whale reactivation could either align with a market redistribution strategy or signal a looming price exit. Meanwhile, technical indicators suggest a shift in UNI’s trend.

The asset recently broke out of a long-standing descending trendline, confirming a bullish structure.

At the time of writing, UNI traded at $5.79, down 2.03% on the day—but still 27% above its recent $4.62 low. If bulls maintain control, the next resistance level at $7.00 could soon come into play.

A clear break above it might open the path toward $10.08, marking a full recovery to February highs.

Are traders fueling the bullish setup or setting up for a squeeze?

Derivatives data supports the bullish outlook, but also carries risk.  On Binance, 67.14% of accounts held long on UNI, pushing the Long/Short Ratio to 2.04, at press time. 

While this skew reflects optimism, it comes with a catch. Such crowding can set the stage for a long squeeze if UNI fails to hold its range.

Having said that, leveraged traders may soon face increased volatility, especially near resistance.

Uniswap network activity rises sharply as fundamentals improve

UNI’s on-chain activity reflects a surge in interest and broader user engagement.

In just 24 hours, Transfer Volume soared by 172.52% to exceed 40.6 million UNI, while the number of Active Addresses increased by 30.28%. Additionally, daily transactions surged 162.18%, reaching a total of 5,884.

This sharp rise in user engagement typically strengthens bullish sentiment and aligns with the ongoing recovery in price structure.

When fundamental factors and technical indicators converge like this, they often signal the potential for sustained market trends, provided external risks remain under control.

UNI whale flows and exchange data hint at near-term volatility

However, whale activity has introduced an element of suspense to the market. UNI’s Exchange Netflow turned positive, increasing by 5.48%, indicating a rise in tokens moving to trading platforms.

Additionally, Large Holder Netflows surged by 337.26% over the past week, reversing the recent downtrend in whale activity. This shift suggests whales may be repositioning or starting to distribute holdings.

If buyers can absorb the incoming supply, UNI could comfortably advance toward $7.

However, failure to do so might lead to short-term weakness, as whales offload positions and markets respond defensively.

Uniswap is showing signs of a legitimate trend reversal, backed by a clean technical breakout and surging on-chain momentum.

Traders are positioning aggressively for further upside, while whale activity adds a layer of uncertainty. Whether UNI breaks above $7 or faces rejection will depend on how the market responds to the revived supply dynamics.

Volatility seems inevitable, but if bulls hold firm, UNI’s upside potential remains very much alive.