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- A whale’s $2.29M purchase and falling exchange reserves are tightening UNI’s supply.
- XRP reached a record-high holder count of 507,110 despite recent 9% price drops.
- Both assets face heavy structural resistance but show signs of a short-term leverage reset.
The cryptocurrency market is currently navigating a period of “extreme fear,” but beneath the surface of declining prices, a different story is emerging. While major assets like Uniswap (UNI) and Ripple (XRP) face stiff technical resistance and aggressive short-selling, on-chain data reveals that large-scale investors and long-term holders are using this volatility to strengthen their positions.
UNI: Whale Accumulation Meets Shrinking Supply
Uniswap’s UNI token has recently found its footing near a multi-month support level of $3.13. This stabilization wasn’t accidental; a significant “whale” recently moved 640,000 UNI—valued at approximately $2.29 million—off the OKX exchange. This move coincides with a 3.07% drop in exchange reserves, suggesting that immediate sellable liquidity is tightening.
Technically, the market is at a crossroads. While the Parabolic SAR has flipped below the price, indicating a short-term reprieve from the sell-off, UNI remains trapped in a broader downtrend. The token must reclaim the $4.92 level to shift the structural narrative. For now, the decline in Open Interest suggests a leverage reset, potentially paving the way for a more organic price move if spot demand continues to build.
XRP: Institutional Backing vs. Derivatives Pressure
Ripple’s XRP has faced a more turbulent week, recording a 9% drawdown to trade near $1.50. Despite this price dip, the asset’s fundamental foundation appears remarkably resilient. The total number of XRP holders hit a new all-time high of over 507,000 this month, signaling that retail conviction hasn’t wavered despite the token being nearly 60% off its historical peak.
Also Read: Uniswap Breaks Key Support: Is a 45% UNI Crash Now in Play?
Institutional support remains a pillar for XRP. SBI Holdings recently reaffirmed its 9% stake in Ripple Labs, emphasizing the “enormous” valuation of the ecosystem. However, the short-term price action is being dictated by the derivatives market. Aggressive short sellers have driven $13.5 million in liquidations, keeping the price confined within a descending channel. Analysts are watching the $1.11 support level closely; if it holds, the current pattern could eventually resolve into a bullish breakout.
A Market of Contradictions
Both UNI and XRP are exhibiting a sharp divide between long-term accumulation and short-term price suppression. While “extreme fear” dominates the headlines, the steady removal of tokens from exchanges and the growth in holder addresses suggest that seasoned investors are betting on an eventual recovery. For these assets to turn the tide, they must first exhaust the current bearish momentum and reclaim key structural resistances.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
