Surge in New UNI Wallets Masks Mixed Signals for Token Price

Uniswap's native token (UNI) has dipped back under $7 after a brief recovery above that level earlier this week. The cryptocurrency now trades below the threshold Santiment identified as crucial, even as the number of new UNI addresses hit a six-year peak.

UNI is changing hands at $6.98, a 2.35% drop over the last day, according to BeInCrypto Markets data. Whether the increase in on-chain activity translates into sustained demand will likely determine its next direction.

UNI Records Its Highest Daily New Wallet Count Since 2020

Santiment data reveals 13,137 new UNI addresses were created in a single day, the highest since September 2020. The number of daily active addresses also rose to 14,591, a level not seen in a year.

Santiment attributed the uptick to recent protocol upgrades, particularly Aggregator Hooks, which Uniswap released on October 22. Meanwhile, Unichain, Uniswap's layer-2 network, migrates to OP Enterprise today.

Santiment's active address metric, however, counts wallets that either sent or received the UNI token itself. As a result, the spike could encompass exchange transfers and wallet reorganizations in addition to actual new holders.

Santiment's price thresholds indicate what each scenario would imply for UNI.

What UNI Must Do to Bring $8 Back Into Reach

The analytics firm identified $7 as the key level to maintain, with $7.50 serving as early evidence of stronger upward momentum. It added that holding $7 while activity remains elevated would keep $8 within striking distance.

Conversely, losing $7 as activity drops off would indicate a fleeting surge, according to Santiment. At $6.98, the altcoin is already trading just beneath that mark.

Analyst DonWedge offered a broader perspective in an October 26 post. He noted that UNI broke out of a falling wedge pattern in June and rallied from $2.60 to $10.90.

He views the $5 to $6.60 range as long-term support, which was lost in January and reclaimed in September. Maintaining that zone keeps his $18 price target viable, while a weekly close below $5 would invalidate the thesis.

UNI currently trades just above the upper boundary of that support zone. Daily active address data over the coming days should reveal whether the new wallets continue transacting.