Uniswap Price Drops 9% After Whale Transfer, Profit-Taking
Uniswap's price has dropped by approximately 9% following a large whale transfer to market maker Wintermute. This transaction involved around 1.37 million UNI tokens, valued at about $12.9 million.
The sudden move was attributed to profit-taking and sector rotation, rather than any new protocol-specific shock. Traders noted that Uniswap had become overextended after a strong rally, with gains of around 93-111% over the past month.
This rally was driven by factors such as SEC approval for tokenized US stocks and CME's plan to list UNI futures. However, technical analysts flagged Uniswap as overbought, with a weekly RSI around 73 and a failure to hold a breakout near $10.95.
The broader market context also contributed to the larger downside move, with total crypto market cap remaining flat and Bitcoin dominance around 58.6%. Analysts identified a cluster of leveraged long positions around $8.87 on Binance, which could trigger more than $10 million in potential liquidations if price moved down through that region.