- Uniswap retested key resistance levels as bullish indicators pointed to a potential breakout
- Market sentiment has aligned positively with reduced selling pressure and open interest.
Uniswap (UNI) has attracted market attention with its sharp price movement and rise in network activity, raising speculation about its long-term upside potential in the DeFi landscape. At press time, UNI was trading at $14.60, following daily gains of 14.33%.
This price increase, coupled with growing user engagement, portends renewed momentum. However, can Uniswap maintain its upward trajectory?
Price Action Signals a Potential Breakout
Uniswap price charts revealed a clear uptrend, with UNI retesting key resistance at $17.12 while maintaining firm support at $12.60. Indicators such as the Average Directional Index (ADX) at 39.72 indicated a strong trend, while the Moving Average Convergence Divergence (MACD) highlighted a slight bearish divergence.
However, the general bullish sentiment persists, with forecasts pointing to a potential breakout towards $20. If UNI breaks through this resistance convincingly, it could signal the start of a sustained uptrend.
Source: TradingView
Address Statistics Show Growing Adoption
Address statistics highlighted increasing network activity, with active addresses increasing by 23.94% and new addresses increasing by 8.42% over the past week. This increase in participation highlighted a growing interest in UNI, driven by its utility in the DeFi space.
Therefore, the high engagement appears to be in line with the price dynamics, indicating user and investor confidence.
Source: In the block
UNI Foreign Exchange Transactions and Reserves Show Positive Trends
Uniswap’s total transactions increased by 1.12% over the past 24 hours, reaching 6.7K according to CryptoQuant analytics. Although this change is modest, it reflects constant activity on the network. Additionally, foreign exchange reserves fell by 0.64% during the same period, signaling a reduction in selling pressure.
This drop suggests that holders are optimistic about potential gains and are refraining from dumping their tokens. Therefore, the reduction in reserves increases the likelihood of a sustained rise in prices.
Source: CryptoQuant
UNI Market Sentiment and Open Interest
Market sentiment also supported the bullish outlook, with open interest increasing 5.67% to $264.24 million. This increase reflects increased speculative activity, a sign of confidence in UNI’s near-term potential.
Additionally, this growing interest is often correlated with significant price movements, arguing for sustainable growth.
Source: Coinglass
Read Uniswap (UNI) Price Forecast 2024-2025
Can uniswap maintain its momentum?
Uniswap could be poised for further growth. With robust price action, growing user adoption, and reduced selling pressure, UNI could be well-positioned to break through key resistance at $17.12.
If this happens, a rise towards $20 or more seems very likely.
