After two weeks of consistent losses, Uniswap’s [UNI] retail traders are starting to flock to the network. At the same time, outflows from the exchanges have tripled to 6.5K UNI over the last 24 hours.
All the above positive development comes at a crucial time, occurring while the token is testing an area of demand at around $6.80. The bullish pressure from the increasing retail traders is already starting to show on the daily chart.
The token’s price action is positively reacting to the demand. As a result, Uniswap’s prices are gaining some bullish momentum.
Could the positive technical paired with the developing on-chain initiate a reversal ahead of the CME plan to add Futures trading on Uniswap on October 19? Or will sellers have their say this time round?
Table of Contents
Is retail demand returning to UNI?
The growing activity on Uniswap implies that the participants might be seeing the dips in UNI’s price as a buying chance. But it must also be remembered that it does not necessarily mean that the bulls have taken the charge.
The most important thing is if this interest will lead to the demand on the Spot level that will be strong enough to offset the selling pressure in the $6.80 zone of demand.
Can rising exchange outflows ease selling pressure?
On the derivative data, UNI’s average outflows from exchange have tripled to 6,500 tokens over the past 24 hours. Uniswap’s skyrocketing exchange outflows suggests that holders are moving tokens away from trading platforms.
This potentially reduces the amount immediately available for sale. So,the reducing supply could amplify the current bullish momentum.
Will the CME listing support a reversal?
CME Group will launch standard and Micro UNI Futures on the 19th of October, pending regulatory approval. The contracts would provide new tools for traders to hedge against the price changes of UNI.
The upcoming listing can contribute to positive sentiment due to UNI getting listed in regulated derivative markets. However, the news will not ensure any new Spot interest, as traders can modify their positions ahead of it.
At the moment, $6.80 is the crucial level to pay attention to. If the demand zone is defended, coupled with the outflows from the exchange and higher buy interest, the price can recover.
In case of the breakdown by sellers, the recent developments in on-chain activity might not be enough to avoid more losses.
Final Summary
- UNI is testing the $6.80 demand zone after two weeks of losses, while rising retail participation hints at renewed interest from traders.
- Exchange outflows have tripled to 6,500 UNI in 24 hours ahead of CME’s planned Futures launch.
