Uniswap Protocol Update

All-time Unichain volume on the Uniswap Protocol was about to cross $12B with a whale withdrawing $5.61M UNI worth from Binance.
UNI price was declining at press time, approaching a retest area of the falling wedge pattern.

Uniswap (UNI) continues to be among the top Layer 2 protocols, with data showing a surge in its trading and whale activity despite price being a decline.

DEX Volume and Whale Accumulation

Uniswap Protocol had a total DEX volume approaching $12 billion with Unichain accounting for virtually all of it, about 99.7%. Liquidity in the protocol was at $641.7 million and UNI took up 73.3% of it.

This showed a drastic rise since mid-April, as traders exchanged nearly $700 million in activity each day. There’s no doubt that Uniswap surpassed other projects, since they competed less with it.

The rising hype suggests growing user trust and continued engagement with the protocol. If Uniswap sustains this momentum, it could further cement its status as a leader in decentralized trading.

However, price volumes remain fluid, and future growth may depend on advancements in the DeFi sector and upcoming innovations.

Meanwhile, a whale recently withdrew 947,557 UNI—worth over $5.61 million—potentially signaling plans for long-term investment or staking.

Historically, large exchange withdrawals have indicated reduced short-term selling pressure and a stronger bullish outlook.

Aside from this, this may initially be useful to implement in decentralized lending protocols or platforms.

The decision may signal that the investor was confident in UNI not to drop or increase sharply. Alternatively, the action may also be out of fear of depending on centralized exchanges.

Market sentiment would be reversed if there were a shift away from purchasing more to selling more.

Can UNI’s Price Rebound?

UNI reached $5.70, just shy of the upper boundary of the wedge it broke out from. The wedge’s resistance, which was broken in May, initially propelled UNI above $7.50 before a price retracement followed.

At the time of writing, the $5.80 level is positioned near the wedge’s retest zone around $5.60. If this support holds, it could confirm a genuine breakout and pave the way for a rally toward $7.50 and potentially $10.

However, failure to maintain the $5.60 zone may indicate a false breakout, potentially leading UNI back down to $4.50 or lower.

The MACD line system showed that momentum was declining: the MACD line went below the signal indicator, while the histogram weakened at -0.046.

For the whale holding $5.61 million in UNI here, a noticeable increase in support would allow them to place themselves in a more upbeat stance.

However, if sellers manage to turn things around, the setup could reverse and cause a delay before further advances can happen.