Arbitrum and Uniswap has been rallying following Ethereum with strong gains over the past week suggesting a begining of he altseason.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
After the US SEC approved the spot Ether ETFs last week, Ethereum (ETH) and its ecosystem altcoins consolidated for a while before kickstarting the recent price rally. On Sunday, May 26, ETH price witnessed fresh bullish action surging to $4,000 extending its weekly gains to more than 28%. On the other hand, Bitcoin (BTC) price has been continuously facing downward pressure and failing to restore back above $70,000. However, the Ethereum rally has triggered fresh momentum in other Layer-2 coins and other altcoins which can see a strong move to the upside.
Over the last week, the Ethereum-based decentralized exchange (DEX) Uniswap has witnessed strong activity. Uniswap’s native cryptocurrency UNI is up by a staggering 41% during the past week. As of press time, Uniswap is trading at $11.01 with a market cap of $6.59 billion.
The UNI/USDT pair faced resistance at $11.81 on May 26. However, if buyers maintain their positions without yielding much to the bears, the chances of breaking above $11.81 will increase. If successful, the pair could climb to $13.34 and then to $15.
Conversely, if the price declines and falls below $10, it will indicate aggressive profit-taking by the bulls. This could push the pair down to the 20-day EMA ($9.05) and postpone the next upward movement.
Photo: TradingView
Along with Ethereum, the Layer 2 platform Arbitrum has also witnessed strong gains of 28% over the past week, There’s strong bullish action in the last 24 hours as well with the Arbitrum (ARB) price gaining an additional 12% and shooting past $1.25. Furthermore, the daily trading volume has also skyrocketed by 113% moving all the way to $850 million.
However, a small positive for the bulls is that they have kept the price above the 20-day EMA ($1.11). This enhances the likelihood of breaking above the resistance. If successful, the ARB/USDT pair could gain momentum and climb toward $1.60 and potentially reach $1.75.
This optimistic outlook will be invalidated if the price drops sharply and falls below $1.10, which could pull the price down to strong support around $0.90.
Photo: TradingView
Oracle service provider Chainlink (LINK) is another major competitor in the altcoin space. The LINK price has been currently hovering around the crucial resistance level of $17.3 over the past three days amid a tight fight between the bulls and the bears.
The upward-sloping 20-day EMA ($15.96) and the RSI above 62 indicate that the bulls are in control. There is minor resistance at $18.68, but if the bulls overcome this barrier, the LINK/USDT pair could advance to $20.74 and then to $22.
Photo: TradingView
Conversely, if the price turns down and stays below $17.32, it will suggest that the market has rejected the breakout. The pair could then decline to the 20-day EMA and subsequently to the 50-day SMA ($14.95).
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
