The psychology of UNI whales that jumped the shark for an 8% rally

On February 27, the broader crypto market registered significant losses across the board. However, Uniswap [UNI] was one of the few altcoins to battle the signals of the broader market. In fact, it even managed to register a recovery rally. And yet it’s interesting to note that a cohort also missed a major opportunity.

Whales jumped too fast

Uniswap’s performance has been in a rut for months. UNI was unable to make a strong recovery. Consequently, after the coin dropped below $10 from its all-time high of $43, one of the largest UNI holders decided to quit.

The events that took place on February 24 sent investors into panic selling. In fact, many investors thought it was better to limit losses before UNI moves further down.

So as soon as UNI posted a 4.7% rise the next day, the whales decided to sell their holdings. In addition, they not only sold early, but they even sold at a loss. About 113 million UNI worth $1 billion fell in losses, of which 54.33 million UNI worth $518 million were whale sales.

Uniswap whale outflow | Source: Intotheblock – Coin-Crypto

Uniswap whales already have significant dominance of 54.76% of Uniswap’s one billion UNI stock. In addition, many of these whales are also long-time keepers as HODLers control 37.12% of the total supply.

Uniswap investor distribution | Source: Intotheblock – Coin-Crypto

The sale of whales thus also included the sale of LTH whales. The number of days consumed as a result of this sale exceeded 28.58 billion days. This turned out to be the most significant sale of LTH in Uniswap’s history.

Sell ​​Uniswap LTH | Source: Santiment – ​​​​Coin-Crypto

Unfortunately, contrary to expectations, UNI beat market opportunities just 24 hours after the aforementioned selloff and rose by nearly 8%.

The altcoin was also very successful in reversing the bearish trend into a bullish one. In addition, as the MACD indicator suggested, it marked a bullish crossover after a month.

Uniswap Price Promotion | Source: TradingView – Coin-Crypto

Notably, if Uniswap can make a sustainable recovery, it would prompt other investors to use HODL for a better opportunity. At the same time, UNI can also attract newer investors.

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