Uniswap: The key support zone could pave the way for UNI to reach $12

The accumulation activity of Uniswap (UNI) is showing signs of a breakout after a new whale wallet withdrew 408,557 UNI, equivalent to about 4.11 million USD, from the Binance exchange.

Notably, this move coincides with netflow data recording a net withdrawal of 1.35 million USD, indicating that the trend of leaving exchanges is becoming increasingly evident.

As of the time of writing, UNI is trading around the 9.58 USD level, remaining stable above the short-term support zone. The large outflow of funds from the exchange, along with the accumulation activities of whales, often reflects confidence in the long-term holding trend.

Nevertheless, the important test lies in the question: is the demand strong enough to turn this accumulation phase into a catalyst for sustainable growth?

In this context, the current market structure of UNI is revealing the potential for new buying pressure to emerge, which could become a driving force pushing the price into an upward cycle in the near future.

Can UNI hold the support level of 8.72 USD to bounce back?

UNI is currently still closely following the upward trend, with the area of 8.72 USD acting as a crucial support layer. If this level is maintained, the upward momentum could extend to the thresholds of 12.32 USD, 15.33 USD, and even further to 18.00 USD. Conversely, losing the support area would trigger the risk of prolonging the correction phase before the market regains its momentum.

At the current time, the DMI indicator records an ADX of 23.50 – reflecting the trend strength of UNI at an average level. Notably, the +D line remains above the -D line, indicating that the bulls have a certain advantage. However, this balance is quite fragile, as if the -D exceeds, the balance will quickly tilt towards selling.

Therefore, successfully protecting the 8.72 USD level is considered a vital factor for UNI to maintain its upward trajectory. Once this level is breached, all momentum will shift to the bears.

Source: TradingView## Are futures traders preparing for a breakout of UNI?

The derivatives market is leaning towards an optimistic trend, as data from Binance shows that up to 61.54% of accounts are holding Long positions, compared to 38.46% Short.

The Long/Short ratio reached 1.60 at the time of writing, further reinforcing the belief that the bullish trend still prevails. Notably, the futures market also recorded the emergence of "whale orders" with large volumes, implying significant capital is supporting the bullish scenario.

However, the high proportion of Long positions also poses a risk that UNI could easily face strong liquidations if the upward momentum stagnates. Nevertheless, the overall picture from the derivatives market still clearly reflects: the bulls are in control.

Source: CoinGlass## Will the decline in exchange reserves lead to a supply shortage?

The UNI reserves on exchanges have decreased to 819.78 million USD, corresponding to a decline of 4.18%. This trend is often seen as a signal for the potential emergence of a "supply squeeze," as the amount of tokens readily available for circulation is shrinking.

In this context, selling pressure tends to decrease, making the market more sensitive to changes in demand. Combined with the continuous outflow of capital from the exchange, the current picture reflects a tightened supply situation — a factor that could create an advantage for a new growth cycle. However, for this scenario to truly explode, demand still needs to have a stronger breakthrough.

Source: CryptoQuant## Is UNI preparing for a decisive breakout?

The outlook for UNI is being strongly bolstered by accumulation momentum from whales, stable outflows, technical support at 8.72 USD, and a clear advantage in the derivatives market leaning towards the bulls. The continued decline in reserves on the exchange further highlights the scarcity of supply.

Although it is still necessary to maintain caution in the face of unpredictable fluctuations, most current signals still support the upward trend. If UNI can hold the key support level and continue to attract leveraged capital flows, the scenario of conquering the 12.32 USD mark – or even higher – will become increasingly feasible.

This could set the stage for a decisive breakout in the upcoming sessions.

SN_Nour