- The Uniswap team moved UNI into Coinbase Prime, a site for institutional over-the-counter (OTC) trades.
- Market participants didn’t consider this a green light; instead, they are selling UNI.
Uniswap’s [UNI] token has been stuck in a downtrend for weeks, with a fresh 2.7% drop recorded in the last 24 hours.
This sell-off currently observed stems from the lack of confidence in the market among holders, as they oppose the team’s decision.
Uniswap team moves funds—But to what effect?
According to SpotOnChain, an address linked to the Uniswap team deposited 9 million UNI, worth $47.5 million, into Coinbase Prime.
In fact, over the last six days, four such wallets sent a total of $60.99 million in UNI to the same OTC platform.
Source: SpotOnChain
Coinbase Prime is an exchange where institutional investors conduct over-the-counter (OTC) trades to avoid large slippage and minimize the effect on market price.
Typically, this should be good news for UNI, as it implies that large investors are beginning to take an interest in the asset and may increase their exposure over time.
Market reaction shows disinterest in UNI
The transfer of UNI to Coinbase Prime has been met with disinterest from market participants, as large holders and spot traders continue to sell.
Data from IntoTheBlock shows that selling pressure has been mounting significantly among large traders in the market.
Source: IntoTheBlock
This group has sold 515,740 UNI, worth $2.74 million, into the market, as Netflow remains positive.
Not surprisingly, spot market traders have followed suit by selling. Spot traders added to the pressure, liquidating $14.98 million worth of UNI in just seven days.
Source: CoinGlass
This marks one of the highest weekly sell-offs recorded in the market, confirming the disinterest. While the combined selling pressure from traders has affected UNI, something surprising is happening.
Bullish sentiment might exist
Having said that, Uniswap’s Total Value Locked (TVL) painted a far more optimistic picture. Since the 26th of April, TVL jumped by $66 million, pushing the protocol’s total to a massive $4.009 billion.
Source: DeFiLlama
To determine how this may reflect on the chart, an analysis of the liquidation heat map provides clarity. Currently, UNI is at a crossroads, meaning the asset can trend higher or drop lower from its current level.
This determination is based on the liquidation levels positioned above and below the current price.
Source: CoinGlass
If UNI drops lower first, it could gather sufficient momentum to overcome resistance upon rebounding—and vice versa, if the asset trends higher first.