After weeks of subdued price action, Uniswap [UNI] has surged 5.40% daily, bouncing off the $5.60 support level. The rally is supported by rising trading volume and renewed bullish momentum, potentially marking the end of a multi-month downtrend. With market sentiment shifting, UNI appears to be gathering strength for a significant move—possibly beyond its $7.50 resistance ceiling.
Surging Network Activity Signals Growing Interest
On-chain data paints a promising picture for Uniswap. According to IntoTheBlock, new addresses on the network spiked by 66.12%, while active addresses rose 19.39% over the past week. This signals a revival of interest in the protocol, despite prior stagnation in price action.
The rise in address churn—especially zero-balance addresses—suggests a repositioning phase as users adjust their portfolios. This level of activity often precedes price recoveries, offering fundamental support for UNI’s short-term resilience.
Smart Money Moves In as Retail Pulls Back
Large transactions have soared, indicating heightened interest from institutional players. Transfers in the $10K–$10M range increased significantly, with a 200% rise in the $1M–$10M bracket alone. In contrast, sub-$1K transactions dropped more than 20%, implying waning retail involvement.
This divergence underscores a broader market narrative: high-net-worth investors are accumulating while smaller holders exit. A 2.40% uptick in whale holdings over the last 30 days confirms this shift, suggesting confidence in UNI’s mid-term upside potential.
Also Read: Uniswap (UNI) Price Soars 17% as Whale Accumulation and Trading Volume Surge
Mounting Pressure Points to Potential Breakout
Technically, UNI remains in a tight $5.50–$7.50 range but has broken its long-term downtrend. The MACD indicator shows signs of an upcoming bullish crossover, a classic precursor to price expansion. Combined with growing volume and a consistently positive OI-weighted funding rate (+0.0056%), the setup leans bullish.
Yet, a decisive breakout above $7.50 is needed to confirm trend reversal. Until then, UNI’s price remains range-bound—but the building pressure from network growth, whale accumulation, and institutional interest suggests a breakout could be imminent.
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
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