Vitalik Buterin’s Uniswap token sale drew attention as UNI traded inside a tight range under persistent liquidity pressure.

High-profile on-chain activity often triggers volatility, yet Uniswap [UNI] showed restraint despite visible sell-side pressure. Price action stayed compressed, with volatility continuing to contract, pointing to hesitation rather than panic.

UNI remained capped beneath resistance as downside attempts lost momentum. Each dip slowed quickly, while upside bounces stalled just as fast. That balance reflected compression, not trend continuation.

Vitalik flow adds context

According to Lookonchain, Ethereum founder Vitalik Buterin sold 1,400 UNI worth $7.48K, 10,000 KNC worth $2.47K, and 40 trillion DINU about five hours earlier. The transfers returned a combined 16,796 USDC.

The UNI sale occurred during a period of dominant short liquidity. However, the transaction aligned with a familiar pattern tied to unsolicited tokens sent to Buterin’s public address.

That context mattered. The disposals reflected routine wallet housekeeping rather than directional conviction. The UNI amount stayed small relative to market depth, even as timing coincided with a liquidity-heavy zone.

Liquidity clustered near the $5.6 level, acting as both a magnet and firm resistance. Sellers defended that zone, while the sale failed to trigger any liquidation cascade. Control stayed intact.

Compression tightens as momentum fades

UNI pressed deeper into the final phase of a falling wedge. Price compression intensified as downside attempts weakened, pointing to exhaustion rather than a clean breakdown.

RSI printed a bullish divergence, showing momentum no longer confirmed lower prices. On higher timeframes, RSI remained below 40, reflecting longer-term weakness instead of panic.

Losing the $4.7 ascending support on higher timeframes could raise downside risk. For now, the $4.81 area stood as immediate 4-hour support, where buyers previously stepped in.

UNI supply continued leaving exchanges rather than entering them. That shift pointed to reduced immediate sell pressure despite the price remaining capped below resistance.

Fewer UNI tokens sat on exchanges, yet the price struggled to push higher as sellers defended key levels.

What it means for UNI

This left traders focused on the $5.6 liquidity band. A reclaim could flip short-term control and open room toward $6 as shorts reacted. Failure to reclaim keeps downside risk active, with deeper supports back in play.

A break above $10 remained the level that would invalidate UNI’s multi-year downtrend and reset higher-timeframe bias.

Final Thoughts

• UNI’s muted response highlighted how liquidity, not headlines, currently dictates price behavior.
• As compression deepened, traders may watch whether absorption turns into resolution.

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Author: Emilio Munoru