Uniswap (UNI) surged nearly 42% to around $4.57 on Feb. 11 after news tied the decentralized exchange protocol to BlackRock's tokenized fund expansion, but large holders sold roughly 5.95 million tokens during the spike — erasing about 26% of the gains and leaving the price near $3.40.
What Happened: UNI Spike and Selloff
The rally did not come out of nowhere. On the 12-hour chart, UNI had been building a bullish divergence since mid-January, with price making lower lows while the Relative Strength Index posted higher lows.
On-Balance Volume broke above a descending trendline on Feb. 11, the same day the BlackRock-linked headline hit, confirming that retail traders rushed into the token aggressively. The breakout candle, however, formed with a long upper wick and a small body — an early signal that sellers were absorbing buying pressure near $4.50.
On-chain data showed supply held by large UNI holders dropped from about 648.46 million tokens to 642.51 million on that day. At prices near $4.57, that roughly 5.95 million-token reduction amounted to about $27M in selling pressure.
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Why It Matters: Whale Distribution Risk
The sequence of events suggests the BlackRock-driven surge functioned as a liquidity event for large holders rather than a lasting trend shift. Retail buyers provided demand while whales provided supply, and once the large wallets finished distributing, buy-side momentum collapsed.
UNI now sits near $3.40 with volume continuing to weaken. If the token holds above $3.21, consolidation may follow, but that support rests on short-term buying rather than long-term accumulation.
A breakdown below $3.21 could trigger a move toward $2.80 — the head of the prior reversal pattern — which would erase the entirety of the BlackRock-related gains.
To regain upside momentum, UNI would need to reclaim the $3.68 to $3.96 zone, which now acts as a major resistance area after the failed breakout.
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