Uniswap's native token, UNI, began October trading near $7.50 and remained stable for the first two weeks before a sharp mid-month drop pushed it below $6.50. Since then, the asset has struggled to recover, primarily hovering between $6 and $6.8, failing to regain its early-October strength amid subdued DeFi sector activity.
However, on-chain data from CryptoQuant reveals a significant uptick in UNI outflows from Binance, particularly among the top 10 largest transactions, which are typically linked to whale wallets. This pattern, with a daily peak of 17,400 UNI in whale outflows and a monthly high of 5,250 UNI—the highest level in three months—suggests accumulation or strategic repositioning by large investors. Whales are known to act with strong conviction, entering positions only when they identify clear technical or fundamental signals, indicating a potential sentiment shift.
Technically, UNI has broken out of a prolonged downtrend that started in July, recently testing resistance around $6.9 before retracing to a crucial support level of $6.53. Analyst Stuart notes that maintaining this support could lead to upside targets of $6.87 and $7.09, reinforcing bullish momentum if sustained.
Background context includes Uniswap's market cap declining from over $6 billion to $4.13 billion, with Bitwise CIO Matt Hougan previously arguing that UNI is undervalued. Concerns about centralization have emerged, such as a study on arXiv highlighting uneven distribution in token networks and liquidity pools, and Token Terminal reporting that Uniswap has created around 340 millionaires through UNI holdings.
The growing whale activity aligns with a broader market reassessment, as large investors seek favorable entry points during retracements, potentially setting the stage for sustained price growth and renewed confidence in the DeFi ecosystem.
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