Although Uniswap has had one of its biggest rallies in months, a concurrent rise in UNI on Binance raises the possibility of selling pressure. The token has increased by about 72% from its recent base, and Binance’s UNI reserve has risen to 71,584,353 tokens, its highest level since at least June 25.
Inflows are rising
The on-chain data that accompanies it demonstrates a significant shift in exchange flows. In September, Binance saw a number of significant positive UNI inflow sessions, including a spike of about 4.11 million UNI. Inflows have once again predominated in recent times, and trading activity has significantly increased in tandem with the price increase. Some caution in the interpretation is warranted.
Growing exchange reserves do not always indicate impending sales by holders. Tokens may be transferred to Binance for a variety of uses, including market making, collateral, and custody. On the other hand, assets are typically easier to trade when deposited on a liquid centralized exchange.
As of right now, the most obvious interpretation is that holders are depositing UNI into strength to access spot liquidity on Binance. Given that UNI has been technically extended, the timing is especially noteworthy.
The token surged through $6, $7, and finally $9 after trading at about $5.00 in late August. It then briefly reached about $10.90. Following its rejection from that local high, UNI is currently trading at about $8.90.
Uniswap’s technical picture
The daily chart’s overall structure is still very bullish. With the shortest average getting close to $7.20 and the longer averages steadily declining, UNI is still comfortably above all significant moving averages. On the other hand, a large upper wick and a series of red candles were produced by the rejection above $10. After getting close to overbought territory, the RSI has also decreased.
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That combination makes the growing Binance balance worth keeping an eye on. The available supply may weigh more significantly on the correction if exchange reserves keep rising while UNI tries to recover $9.50–$10. The nearest significant support is currently between $8.50 and $8.70.
Holding this area would keep $10–$11 accessible while maintaining the most recent breakout structure. A decisive loss of about $7.80 would expose the sharply rising moving average around $7.20.
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