Uniswap’s recent price action indicates a possible continuation of its upward momentum, sparking interest among investors in the DeFi sector.
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Uniswap retested key resistance levels as bullish indicators pointed to a potential breakout.
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Market sentiment has been aligning positively with reduced selling pressure and increasing Open Interest.
Uniswap [UNI] has shown significant price movement and increased network activity, intensifying speculation about its bullish potential in the DeFi landscape.
Price action signals potential breakout
Uniswap’s price charts revealed a clear upward trend, with UNI retesting the key resistance at $17.12 while holding firm support at $12.60. Indicators such as the Average Directional Index (ADX) at 39.72 pointed to a strong trend, while the Moving Average Convergence Divergence (MACD) underlined a slight bearish divergence.
However, the overall bullish sentiment persists, with predictions pointing to a potential breakout towards $20. If UNI breaches this resistance convincingly, it could signal the start of a sustained bull run.
Source: TradingView
Address stats show growing adoption
Address statistics highlighted increasing network activity, with active addresses surging by 23.94% and new addresses growing by 8.42% over the past week. This uptick in participation highlighted a rising interest in UNI, driven by its utility in the DeFi space.
Therefore, the strong engagement seemed to be in line with the price momentum, indicating confidence among users and investors alike.
Source: IntoTheBlock
UNI transactions and exchange reserves indicate positive trends
Uniswap’s total transaction count grew by 1.12% over the last 24 hours, hitting 6.7K as per CryptoQuant’s analytics. While this change is modest, it reflected consistent activity on the network. Additionally, exchange reserves fell by 0.64% over the same period, signaling reduced selling pressure.
This decline suggested that holders are optimistic about potential gains and have been refraining from offloading their tokens. Consequently, the reduced reserves bolster the likelihood of a sustained price rally.
Source: CryptoQuant
UNI market sentiment and Open Interest
Market sentiment further supported a bullish outlook, with Open Interest climbing by 5.67% to $264.24 million. This hike reflected heightened speculative activity, signaling confidence in UNI’s near-term potential.
Moreover, such growing interest has often correlated with significant price movements, adding to the case for sustained growth.
Source: Coinglass
Can Uniswap sustain its momentum?
Uniswap might be poised for further growth. With robust price action, increasing user adoption, and reduced selling pressure, UNI may be well-positioned to break through the key resistance at $17.12.
If this happens, a hike towards $20 or higher seems highly likely.
