UNI Rally Fades as Netflows Surge Amid Resistance

Uniswap's UNI token has seen a remarkable surge in value over the past few weeks, tripling from around $3 to nearly $9. However, on-chain data suggests that this rally may be losing momentum.

The netflows of UNI on Binance have surged by nearly 700% in just a few days, which is typically seen as a signal of imminent selling. This behavior often occurs when an asset approaches a major resistance zone, and at $9, UNI is running into such a technical level.

The token has broken through several key resistance levels in sequence, confirming a structure of higher highs and lower lows on the daily chart. However, this momentum may be short-lived as sell-side liquidity builds up, potentially leading to a sharp reversal.