Uniswap's Bold Moves: Whale Accumulation and the Anticipation of v4 Drive Investor Confidence

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

Anticipation for Uniswap v4

Uniswap announced some good news about its new version of Uniswap v4. On January 2, 2025, Uniswap Labs teased the new version with a "coming soon" message after missing its target launch date. The features to be included in the new version are Hooks for custom code, dynamic trading fees that change according to market conditions, and better pool management to save costs. As of December 2024, its trading volume was $106 billion, making it the largest decentralized exchange. To further secure, there is a $15.5 million bug bounty program that launched in November 2024. The changes that are in v4 involve the community in its determination and are teased as if some other surprises wait to be told for 2025. Thus, Uniswap will likely keep on reigning DeFi through adjusting its services as the needs call for it.

Whale Accumulation Signals Strong Investor Confidence in Uniswap (UNI)

During December 2024, major whale accretions of Uniswap (UNI) tokens showed interest in the project by large investors. The interest came despite market ups and downs during the month. Big investors purchased more than 1.68 million UNI tokens during the month. On December 12, a major move took place when Galaxy Digital withdrew 1.07 million UNI from exchanges to prove their confidence in Uniswap's future growth. On December 27, another whale bought 100,000 UNI tokens worth $1.42 million. The buying activity is an indication of a good market view on the side of large investors who are maximizing the opportunities that they consider worthwhile in the market. Generally, accumulation is an indicator of belief in the future of Uniswap.

Any daily close above $17 confirms further bullishness.

UNIUSD showed a minor pullback after a minor sell-off.  The pair holds well above the short-term (34 and 55 EMA) and long-term moving average. It hit a low of $12.37 and is currently trading around $13.28.

The bullish invalidation can happen if the pair closes below $5.80. On the lower side, the near-term support is $10. Any break below targets $8/$7.37/ $6.38/$5.80.