UNI’s Exchange Reserves Surge

UNI’s exchange reserves surged recently, hinting at a hike in selling pressure for the token
Altcoin’s technical indicators and Unichain’s $1 billion volume milestone could aid a reversal

Uniswap’s native token, UNI, has seen a surge in exchange reserves over the last 24 hours, according to a report by CryptoQuant. This increase indicates that more market participants are moving their UNI tokens to exchanges, possibly to sell.

Previously, such behavior has often led to price drops as increased supply meets market demand. If this trend continues, downward pressure on UNI’s price could occur.

On the other hand, technical and ecosystem developments hint at a potential reversal in the near term.

A Glimpse of Hope for UNI Bulls?

Despite the selling pressure, UNI’s price level at $6.625 has been probing a strong demand zone, which has historically supported several reversals.

Additionally, the altcoin’s RSI (Relative Strength Index) was in the oversold territory at press time, suggesting that UNI might be undervalued. This could lead to a bounce if buying interest increases.

If bulls step in, a short-term rally could be on the horizon for UNI.

On-chain Metrics Point to a Potential Rally

Interestingly, UNI’s on-chain activity also offers some positive insights. Unichain recently crossed $1 billion in volume on the Uniswap Protocol, according to a tweet from Uniswap Labs. This milestone highlights Uniswap’s sustained popularity in the DeFi space. If this growth results in higher demand for UNI, it could help neutralize the selling pressure.

The balance between increasing selling pressure and technical reversal signals leaves UNI’s next move uncertain. If the selling pressure dominates, the altcoin may drop to test lower support levels. However, if buyers take advantage of the current oversold state and positive on-chain developments, a relief rally could emerge.