Bug Bounty Bonanza: Uniswap Sees Whale Accumulation Alongside Strategic Sell-offs

UniswapX Protocol is a non-custodial Dutch auction-based trading protocol implemented for the Ethereum Virtual Machine. It aggregates both on-chain and off-chain liquidity, internalizes miner extractable value (MEV) through price improvement, offers gas-free swaps, and can be extended to support cross-chain trading.

Major Security Initiative: $15.5 Million Bug Bounty Launched

This month, Uniswap announced a historic bug bounty program worth $15.5 million for its upcoming Uniswap v4. Launched on November 26, this program encourages ethical hackers to identify security issues in the core contracts before the protocol goes live. Alongside this, Uniswap started an Address Mining Challenge on November 10, inviting participants to suggest potential deployment addresses for v4. The new version is expected to lower transaction costs and enhance customization for users, reflecting Uniswap's commitment to improving security and functionality in decentralized finance.

Whale Activity: Notable Accumulation and Sell-offs Observed

In November, significant whale activity in Uniswap (UNI) notably impacted the market. On November 19, a major whale purchased 437,000 UNI tokens for about $4 million, which led to a price increase to around $9.17. This whale now holds a total of 2.248 million UNI, valued at approximately $20.8 million. Following this purchase, Uniswap's trading volume surged by 38.85%. However, there were also large sell-offs by other whales, including one transferring 628,406 UNI to Crypto.com and another sending 186,558 UNI to Coinbase Pro, suggesting a potential bearish trend for the token.

UNIUSD Price Surge: Bullish Momentum in the Market

UNIUSD was one of the best-performing assets yesterday, showing a massive jump of more than 25%. The pair currently trades well above the short-term (34 and 55 EMA) and long-term moving averages, reaching a high of $13.81 and now trading around $12.72. A daily close above $17 would confirm further bullishness.

Support and Resistance Levels: Trading Insights

The bullish invalidation could occur if UNIUSD closes below $6.60. Near-term support is set at $12, while breaking below this level could lead to targets of $10.25, $8.68, $7.95, $6.60, $6.38, and $5.80. Immediate resistance is around $14, and a breach above could indicate a minor pullback, with potential jumps to $17 and $20. If the price exceeds $20, it may climb to $25 and $30. It’s advisable to buy on dips around $8, with a stop loss at $6.37 and a target price of $14.