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Uniswap surges by 20% in response to Bitcoin's continual climb beyond the $100,000 mark.

Cryptocurrency Uniswap surged by 35% as Bitcoin reached $100K, yet just 8% of long-term holders experienced profits. The question remains: what's the future of this rally?

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Cryptocurrency Uniswap soared by 35% with Bitcoin surpassing $100K, yet just 8% of long-term...
Cryptocurrency Uniswap soared by 35% with Bitcoin surpassing $100K, yet just 8% of long-term Uniswap holders experienced profitability. Anticipating further surge?

Uniswap surges by 20% in response to Bitcoin's continual climb beyond the $100,000 mark.

Buckle up for the weekend as Uniswap surges!

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Uniswap (UNI), the popular decentralized exchange, skyrocketed by an impressive 26%, thanks to Bitcoin's triumphant charge past the $100K mark. Yowza!

On the 9th of May, the DeFi token didn't slow down a bit, adding a bonus 3% to its incredible recovery, totaling a whopping 35% within a mere 48 hours! but is the good news about to end?

Looks like the $7.5-$8 zone lies ahead, a tough nut to crack for the bulls!

UNI's ascendancy or descent?

Source: UNI/USDT, TradingView

Remember how Q1 witnessed a wrenching drop around $5? Well, that same level once barred the August 2021 plunge's rebound. Now, if history repeats itself, the obstinate gridlock inside the $8 zone (red lava zone) could be UNI's imminent objective.

Bulls, with an extra spark in their step, could add another 18-20% to UNI's current $6.3, aiming for the $7.5-$8.0 level. Intriguingly, the RSI is flirting with the overbought territory, leaving room for more upward action without giving away any gloomy reversal signs just yet.

Moreover, the Average True Range (ATR) still remains tame, thriving on the thrill of the rally without hinting at saturation.

But, if UNI breaches the 50-EMA at $5.8, the bullish narrative will crumble like a house of cards.

Break-even Breakers

It's crucial to remember that the $8 wall might be tricky to surmount for a couple of compelling reasons. First off, only 8% of UNI holders are currently in the black, but a whopping 61% are sitting at break-even.

In a doomsday scenario, investors at the breakeven point may cash out their stash to safeguard their dough, potentially stalling the rally.

Source: IntoTheBlock

Just to add fuel to the fire, Santiment reveals that UNI holders with a 30-day history enjoyed an average unrealized profit of 18%. This could spur a flurry of shorts to cash in on their gains.

So buckle up, folks! The $8 hurdle could challenge the bulls, especially if Bitcoin dips below $100K. But, should the bullish sentiment persist, and Bitcoin's dominance shrinks to 60% or less, UNI could aim for the $9.5 or even the $10 psychological hurdle!

Disclaimer: The information presented here does not constitute financial advice and is solely the writer's opinion

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[uncensored rigorous analysis ahead]

  • The $8 resistance could be resilient due to several factors, making it a challenge for Uniswap (UNI) to breach this barrier, possibly stalling the rally.
  • The $8 resistance zone is a psychological barrier and a round number that many traders and investors pay attention to, making it a potential source of selling pressure.
  • Technical indicators, such as moving averages, could also affect the stickiness of the resistance. If UNI is trading below long-term moving averages, it may struggle to sustain a rally above $8.
  • The Relative Strength Index (RSI) and Bollinger Bands can provide clues about market sentiment and volatility. If the RSI is approaching overbought territory and the Bollinger Bands are widening, it could suggest a reversal, potentially capping the rally at or below $8.
  • Negative fundamental developments, like regulatory challenges or increased competition among decentralized exchanges, could make the $8 resistance more challenging to overcome.
  • A lack of sufficient trading volume or liquidity at key price levels could also contribute to resistance. If there isn't enough buying interest at $8, UNI may find it difficult to break through this level.
  • Break-even investors, who are not in the green or red, could sell a portion of their holdings should the token reach the $8 resistance, further adding selling pressure and potentially stalling the rally.
  • Short-term holders who have had their UNI for 30 days and have enjoyed an average unrealized profit of 18% could book a profit, further fueling a potential sell-off at the $8 resistance.
  • Should Bitcoin's price drop below $100K, it may add additional pressure on Uniswap, increasing the potential for the $8 resistance to be a significant hurdle for the token.
  • On the flip side, if the risk-on sentiment continues and Bitcoin's dominance decreases to 60% or less, Uniswap could aim for higher targets like $9.5 or even the $10 psychological level.
  • It's essential to keep an eye on the market's dynamics to determine the best course of action for your Uniswap investment.
  1. The DeFi token Uniswap's (UNI) impressive surge of 26% was fueled by Bitcoin's rise past the $100K mark, with a further 3% added in just 48 hours.
  2. The $8 zone presents a significant challenge for the bulls as only 8% of UNI holders are in the green, while a large 61% are at break-even.
  3. Should Bitcoin's dominance shrink to 60% or less, UNI could potentially aim for the $9.5 or even the $10 psychological hurdle.
  4. The RSI and Average True Range (ATR) indicators still remain favorable, leaving room for more upward action for UNI without any immediate gloomy reversal signs.
  5. The sell-off could be accelerated by short-term holders who have enjoyed an average unrealized profit of 18%, potentially creating additional selling pressure at the $8 resistance.

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