Uniswap (UNI), the native token of the leading decentralized exchange Uniswap, has defied the broader crypto market’s consolidation phase with a strong breakout above $10. This bullish surge has opened doors for a potential 30-50% rally in the coming days.
Currently trading at $10.68, UNI boasts an impressive 8.8% daily gain. However, daily trading volumes have dipped 25% to $262 million, indicating some profit-taking alongside the price increase.
Technically, Uniswap’s strength is evident in the formation of a bullish “golden cross” pattern. This bullish indicator occurs when the 50-day moving average surpasses the 200-day moving average, suggesting a sustained upward trend.
The Relative Strength Index (RSI) for Uniswap sits at 52.68, signifying that the token is neither overbought nor oversold. This healthy balance leaves room for further price hikes without immediate selling pressure. Additionally, with over 51% of UNI holders in profit, there’s an incentive to hold for further gains before profit-booking kicks in.
The current price action suggests a “channel pattern” for Uniswap. If the overall crypto market picks up steam, UNI could surge towards the channel’s upper resistance level of $13.15 by next week. A potential breakout above this level could propel the price further to $15 and even $20.
However, a trend reversal could see Uniswap lose momentum and test support at $9.90. If the bears tighten their grip, UNI might plunge to $8.40 within the month.
Also Read: Uniswap V2 Takes DeFi To New Heights: Why Ethereum Layer 2 Is Soaring
Adding fuel to the bullish fire is Uniswap Labs’ recent acquisition of Crypto: The Game (CTG), a popular blockchain-based game. This strategic move aligns with Uniswap’s vision of making blockchain interactions more engaging and accessible. This partnership has investors excited about the potential for future growth and innovation within the Uniswap ecosystem.
Whether Uniswap extends its rally or experiences a reversal remains to be seen. However, the current technical indicators and strategic acquisitions paint a promising picture for UNI in the short term. Investors are eagerly watching how the broader market and ongoing developments within the Uniswap ecosystem will shape the token’s future trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
