Decentralized exchange Uniswap experiences 17% surge in value - However, the ascend of UNI tokens might not be as positive as it appears
Over the past 24 hours, Uniswap [UNI] has witnessed a 17% price rise, propelling its value to $7.67. This significant increase is noteworthy, as it signifies a breach of the $7.5 resistance level and marks a two-month high for the cryptocurrency.
Two weeks ago, UNI confronted a rejection at the $7.50 mark while attempting to break out of a descending channel. However, the recent surge has enabled UNI to surpass this resistance, with strong support at $5.60 maintained throughout the climb.
This upward trend can be attributed to an increase in demand, as Uniswap's trading volume spiked by 89.5%. The total volume stood at $1.53 billion, with a Daily Trading Volume of $901.6 million.
In addition to retail activity, whales have also been active participants in the market, contributing to the surge in demand. Over the past three days, the number of large transactions nearly doubled, from 41 to 254. The increased whale activity has raised questions about a potential buying spree or exit dump.
However, Netflow data sheds light on the situation, revealing that whales have been net buyers, accumulating over 6.75 million UNI at the time of writing. While whales have also been offloading 6.3 million tokens, the overall Large Holders Netflow remains positive with a surplus of 339k.
The same pattern can be observed on the spot market, as UNI saw 6.96 million tokens bought via taker orders, pushing the Cumulative Volume Delta [CVD] into a buyer-dominant territory.
Uniswap's upward trajectory may rely on the completion of a golden cross on the short-term Moving Average [MA]. The 9DMA is nearly crossing the 21 DMA from the downside to the upside. If this cross is completed and the price holds above $7.818 [200 EMA], UNI may potentially experience further gains.
However, maintaining the uptrend depends on UNI holding the $6.87 [21DMA] level. Failure to do so could potentially trigger a pullback towards $6.4. Ultimately, the sustainability of this rally hinges on how Uniswap navigates the next profit wave.
- The surge in Uniswap's price and trading volume, combined with increased whale activity and positive Netflow data, suggests that crypto enthusiasts and large investors alike might be accumulating UNI tokens, anticipating further technology advancements in the exchange.
- If the golden cross is completed on the short-term Moving Average, with the 9DMA crossing the 21 DMA from the downside to the upside, and if Uniswap can maintain its price above the $7.818 resistance level (200 EMA), it could potentially lead to even greater gains for UNI token on the crypto exchange.
