Uniswap is breaking multi-month price levels amid ongoing bullish rally.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Uniswap UNI $15.16 24h volatility: 9.0% Market cap: $9.10 B Vol. 24h: $1.48 B has seen an impressive surge in its price in the last 24 hours. After the general crypto market rebound, its price gain went as high as 35%. According to CoinMarketCap data, the coin has now spiked by 35.47% and is trading at $9.11. This price action has successfully broken the lack of momentum that Uniswap has experienced since July.
The surge in UNI price has brought a wave of renewed optimism to the altcoin. It also hints at a sustained rally that holds the potential to push Uniswap’s price above the $10 mark in the coming days. Generally, there are encouraging signals surrounding the coin at this time. To a large extent, daily on-chain transactions on the protocol report profits rather than losses.
Explicitly, the prolonged period without strong bullish momentum did not lead to significant losses for investors. With profitable transactions, investors kept up with a positive sentiment. This motivated continued trading activity, which remains crucial to Uniswap’s liquidity. For perspective, every protocol needs to maintain high liquidity to meet trading demands and attract further investment.
This is a very effective way of providing new and seasoned investors with a stable environment. Since profit encourages investors’ participation, Uniswap may see a major rally and a massive influx of capital in the coming weeks. From a technical point of view, Uniswap has imminent potential growth.
Based on its Exponential Moving Averages (EMAs), Uniswap is headed for a golden cross. Investopedia explained a Golden Cross as a chart pattern in which a relatively short-term moving average crosses above a long-term moving average. A bullish breakout pattern forms when a security’s short-term moving average crosses over its long-term moving average or resistance level.
Uniswap is battling a Death Cross, with the 50-day EMA crossed below the 200-day EMA. This sentiment started three months ago, signaling a bearish market. However, the market is rebounding in Uniswap’s favor, especially after recording a 35% price rally. With the gaps closing between both EMAs, a golden cross may be a low-hanging fruit for UNI.
The recent surge has helped the coin reclaim the $9.09 support level. If UNI continues to hold this support, it may sustain its current momentum. The current outlook allows the altcoin to attempt further price gains in the short term. Notably, the next bullish price target level for Uniswap is based on its capacity to break through the resistance at $10.06.
The $10.06 outlook is a level that the coin has not tested in nearly five months. Once it can flip it, more upward movements are likely. In the long run, this will reinforce Uniswap’s bullish sentiment and trigger more market participant buy-ins. On the flip side, should UNI slip below $9.09, the price could reach $8.23 or even lower.
In this case, it would invalidate the current bullish outlook, indicating consolidation needs to be addressed before the next rally attempt.
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.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
