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Uniswap (UNI) pumped 26% on May 8th as Bitcoin broke above $100,000 for the first time in three months. Before the U.S. market opened on May 9th, UNI posted an additional 3% gain, extending its 48-hour recovery to 35%. However, the key question is whether the rally can extend into the weekend amid a critical resistance at the $7.5-$8 zone.
UNI Bulls Eye $8 Amid Key Resistance
The Q1 decline found support around $5, the same level that held during the August 2024 plunge. If history repeats, UNI could target the $8 resistance zone, representing a potential 18-20% gain from its current level of $6.3. Technical indicators align with this outlook; the RSI is near overbought territory, yet no reversal signs have emerged. Meanwhile, the Average True Range (ATR) remains relatively low, suggesting the rally may still have legs.
Profit-Taking at Break-Even Levels?
Despite the bullish momentum, UNI faces a potential sell-off at the $8 mark. According to Santiment, 61% of Uniswap holders are currently at a break-even point, while only 8% are in profit. With an average unrealized profit of 18% among short-term holders, profit-taking could intensify near the $8 resistance, potentially stalling further gains.
What’s Next for UNI?
For bulls, a break above $8 could pave the way for a push towards the $9.5-$10 range, provided Bitcoin sustains its surge and BTC dominance dips below 60%. On the downside, the bullish thesis would be invalidated if UNI falls below the 50-EMA at $5.8, opening the door for further declines. All eyes are now on UNI’s price action as traders weigh profit-taking against potential upside momentum.
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.
Also Read: Uniswap [UNI] Price Dips Amid Fund Moves & Selling Pressure, Despite $4B TVL
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
