The surprise Uniswap BlackRock rally, driven by integration with tokenized funds, raised the price of UNI by 40% before a severe correction. According to Uniswap Labs and analyst Ananda Banerjee, whales liquidated 5.9 million assets during the peak. This technical maneuver, executed on February 11, left many retail buyers trapped in significant losses.
During the last few days, the market witnessed how the Uniswap BlackRock rally generated overwhelming optimism among the smallest investors. However, this upward movement, which reached a maximum of 4.57 dollars, was marked by signs of technical exhaustion. The RSI bullish divergence warned of a rebound, allowing retail buying pressure to intensify quite drastically at first.
Massive distribution from whales stops the bullish momentum of the UNI token
When analyzing the movements of large portfolios, it is observed that majority holders sold nearly 27 million dollars. This coordinated distribution by the crypto whales occurred precisely when retail enthusiasm was at its highest point. Therefore, the massive supply exceeded the existing demand, causing a price reversal of 26 percent quite quickly.
Likewise, the reduction of holdings by large validators suggests that the movement was used to generate exit liquidity. Although the Uniswap BlackRock rally seemed solid, the balance volume began to falter dangerously. In this way, large investors secured significant profits while the price was at overbought levels for the entire day.
Integrating BlackRock’s BUIDL fund through UniswapX represents a significant step forward for the mass adoption of Blockchain technology today. However, the impact on the price was ephemeral, as the technical structure was already fully mature for a correction. The inverted head-and-shoulders pattern was completed, signaling that the bullish movement had already met its target.
Can the 3.21 dollar support sustain the price of Uniswap now?
On the other hand, analysis of the four-hour chart reveals that the balance volume has begun to decline. The weakness of current buying momentum suggests that speculators are abandoning their positions in the face of uncertainty. Meanwhile, the UNI price fluctuates dangerously close, seeking to establish a solid base on support levels that are critical.
The implications for investors are clear, since extreme volatility has trapped those who bought at historical highs. The resistance zone near 3.68 dollars now acts as a wall difficult for bulls to overcome. Therefore, market sentiment has turned quite cautious, waiting for liquidity to stabilize after the recent event of a financial nature.
Furthermore, if the 3.21 dollar support happens to break, the price could drop to 2.80 dollars very soon. The invalidation of news-driven gains is a latent risk when there is no genuine institutional accumulation. Therefore, maintaining vigilance over the commercial flows is indispensable to avoid further losses in this volatile environment.
Looking toward the future, consolidation above current levels will be essential to avoid a retreat toward previous lows. The recovery of investor confidence will depend on the asset’s ability to maintain its operational utility. The DeFi ecosystem continues to evolve rapidly, although the risks of massive liquidation remain latent for all participants in the market.
