Uniswap (UNI) has been the center of attention in the cryptocurrency market, following a remarkable rally in November. This surge solidified a macro bullish sentiment, which has since been playing out in recent weeks through a consolidation phase. This pause in momentum is providing an opportunity for new buyers to step in. With a fully diluted market capitalization of approximately $16.5 billion and an average daily trading volume of around $657 million, Uniswap has become a magnet for institutional investors eager to diversify their crypto holdings.
The utility-centric and decentralized finance (DeFi) oriented altcoin has experienced a significant upswing of over 160% since the start of November. This rally successfully breached the previous resistance level near $16.5. Furthermore, the UNI/BTC pairing is showing indications of a potential trend reversal, as the altseason appears to be entering an explosive phase.
Uniswap Whales Prepare for Major Upswings
Recent on-chain data from Santiment reveals that over 800,000 UNI tokens, valued at more than $13 million, have been moved to various cryptocurrency exchanges over the past two days. Notably, a significant whale, holding a crypto portfolio worth $89 million, transferred 1.49 million UNI tokens, equating to over $24 million, to the Binance exchange earlier today.
In another notable development, the Uniswap team has moved nearly 5 million UNI tokens to Coinbase Prime, breaking a dormancy period of more than four years. These strategic movements suggest that institutional investors are positioning themselves for potential significant gains in the near future.
Midterm Targets
Analyzing the daily time frame, UNI’s price against the US dollar is testing a critical resistance/support level above $16. This juncture is crucial and could catalyze the next bullish phase. Additionally, the weekly Relative Strength Index (RSI) has recently surpassed the 70% mark, a level it hasn’t reached since earlier this year.
With the upward trend firmly established in the higher time frames, UNI’s price is poised for a potential 100% increase in the near term. Should there be a short-term pullback, UNI is expected to find strong support above the $14 mark before resuming its bullish trajectory.
Market Impact
The growing confidence in Uniswap’s bullish prospects is likely to ripple through the broader DeFi space, which has expanded to a market cap exceeding $138 billion, with a 24-hour trading volume of approximately $11.4 billion. Many centralized and decentralized exchange-focused crypto tokens are already hinting at a looming bullish breakout towards new all-time highs.
