Uniswap (UNI) price has rebounded 40% since dropping to a 2023 bottom of $3.7 on June 10. The heightened development activity across the Uniswap network has attracted the attention of whale investors in recent weeks. How will the UNI price react in the coming weeks?
On June 13, Uniswap announced the much anticipated “V4 Upgrade”. The network upgrade is set to lower transaction costs and enable new features such as on-chain limit orders and auto-compounding of liquidity provider (LP) incentives.
This landmark network improvement has caught the eye of institutional investors as it coincides with major Centralized exchanges battling regulator crackdowns.
Uniswap Developers are Getting Busy
On-chain data compiled by Santiment shows that developer activity on the Uniswap network has increased considerably this month. As depicted in the chart below, Uniswap Development Activity has increased by more than 9% between June 6 and June 28
Development Activity evaluates how much attention and resources are devoted to improving the network. When a blockchain network adds new features and expands capabilities, it reinforces investor confidence in its long-term viability.
Notably, historical data shows that UNI price trends have often been closely correlated to swings in Development Activity. And if this pattern continues to reoccur, UNI holders can expect more gains in the coming weeks.
Whales are Paying Close Attention to the New ‘V4’ Features
On June 25, Uniswap recorded more than 119 whale transactions, the highest in 5-months. This signals that the new features introduced by the development team in Uniswap ‘V4’ upgrade appear to be attracting large institutional investors’ attention.
Notably, between June 22 and June 27, UNI Large Transactions have soared by 160%, according to the Santiment chart below.
Large Transactions measures the trading activity of crypto whales by summing up the daily number of transactions exceeding $100,000.
When whales begin to increase their bets on a token, it indicates that they are growing confident in the project’s viability. Furthermore, strategic retail investors could take a cue from the whales and take long positions as well.
The rising Developer Activity and bullish sentiment among UNI whale holders could trigger more upswing.
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UNI Price Prediction: Time to Break above $6?
Given the aforementioned factors, the bulls will set their sights on the $6 price target. But first, they must smash through the $5.50 resistance.
At that zone, 26,080 investors that bought 5.76 million UNI tokens at the minimum price of $5.53 could close their positions. But if the bullish momentum is sustained, Uniswap price could rally toward the $6 target.
Still, the bears could flip the bullish price prediction if UNI slips below $4.5 again. But, as seen above, 24,480 investors that bought 2.81 million Uniswap tokens at an average price of $4.49 could offer significant support.
Nevertheless, if that support level gives way, then UNI could retrace further toward $4.
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