Uniswap (UNI) has been making waves in the cryptocurrency market, especially after its notable rally in November. This surge has reinforced a macro bullish sentiment around the altcoin, capturing the attention of both retail and institutional investors. In the past fortnight, Uniswap has been consolidating, allowing new buyers to enter the market and potentially driving another price rally.
Uniswap Whales Prepare for Major Upswings
Recent on-chain data from Santiment indicates significant movements in the Uniswap market. More than 800,000 UNI tokens, valued at over $13 million, have been transferred to various crypto exchanges within just two days. Highlighting this trend, a notable whale with a substantial portfolio of $89 million deposited 1.49 million UNI tokens, worth over $24 million, to the Binance exchange.
This influx of UNI into exchanges is further underscored by the Uniswap team’s recent transfer of nearly 5 million UNI tokens to Coinbase Prime, marking the end of a dormancy period exceeding four years. Such large-scale transactions suggest that major players are positioning themselves for anticipated market movements.
Midterm Targets
Analyzing the daily UNI/USD chart, the price is currently testing a pivotal resistance/support level above $16. A successful breach of this level could set the stage for the next bullish phase. The weekly Relative Strength Index (RSI) has also surpassed the 70% mark for the first time this year, signaling potential upward momentum.
Given the established upward trend in higher time frames, there’s a strong possibility for UNI’s price to double in the near term. Should there be any short-term corrections, the price is expected to find robust support above $14, maintaining a bullish trajectory.
Market Impact
The ongoing optimism surrounding Uniswap could have a ripple effect across the DeFi sector, which boasts a market capitalization exceeding $138 billion and a 24-hour trading volume around $11.4 billion. As Uniswap and similar tokens signal potential bullish breakouts, the decentralized finance space is poised for significant developments.
In conclusion, the current market dynamics and institutional interest suggest that Uniswap’s rally might just be in its early stages. Investors and traders should keep a close eye on market movements and on-chain data to optimize their strategies in this evolving landscape.
