Uniswap (UNI) experienced a significant price surge of nearly 42% on February 11, reaching a high of approximately $4.57 following news of its connection to BlackRock's tokenized fund expansion. However, the rally was short-lived as sellers quickly erased about 26% of the gains, bringing the price down to around $3.40. The initial surge was driven by retail momentum, as indicated by a bullish divergence in the Relative Strength Index (RSI) and a breakout in On-Balance Volume (OBV) on the same day the BlackRock news emerged.
Despite the strong upward movement, the rally faced resistance near $4.50, where large Uniswap holders, or whales, began selling off their holdings. Data shows a reduction of approximately 5.95 million UNI tokens, equivalent to $27 million, contributing to the sharp price rejection. This whale activity suggests that the surge was used as a liquidity event, with retail buyers providing demand while large holders supplied the market.
Currently, Uniswap is trading near $3.40, with weakening volume indicating fading speculative demand. The price may attempt consolidation if it holds above $3.21, but a breakdown could lead to further declines toward $2.80. To regain upward momentum, UNI must reclaim the $3.68 to $3.96 range, which now serves as a significant resistance level.
Uniswap (UNI) Surges 42% on BlackRock News, Faces Sharp Correction
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