Uniswap Price Rally: Can UNI Double Again in the Coming Weeks?

The post Uniswap Price Rally: Can UNI Double Again in the Coming Weeks? appeared first on Coinpedia Fintech News

After an impressive rally in November, which confirmed macro bullish sentiment, Uniswap (UNI) has been consolidating in the past two weeks to give a chance for more buyers. Furthermore, the mid-cap altcoin, with a fully diluted valuation of about $16.5B and a daily average traded volume of about $657M, has attracted more institutional investors seeking to diversify their crypto portfolios.

The utility-focused and DeFi-based altcoin has rallied over 160 percent since the beginning of November, thus breaking out of the former resistance level around $16.5. Moreover, the UNI/BTC pair has been attempting to initiate a trend reversal, as the altseason shows early signs of entering the parabolic phase. 

Uniswap Whales Prepares for Major Upswings

According to on-chain data analysis provided by Santiment, more than 800k UNI tokens, worth over $13 million, have been deposited to different crypto exchanges in the past two days. Earlier today, spot-on-chain identified a mega whale with $89 million in the crypto portfolio, who deposited 1.49 million UNI, worth over $24 million to the Binance exchange. 

Earlier this week, the Uniswap team sent nearly 5 million UNI tokens to Coinbase Prime after a dormancy of more than 4 years. 

Midterm Targets

In the daily time frame, the UNI price against the US dollar has been retesting a crucial resistance/support level above $16, which could easily yield the next bullish phase. Furthermore, the weekly Relative Strength Index (RSI) recently broke out of the 70 percent level for the first time since early this year. 

With the rising trend established in the higher time frames, UNI’s price is well positioned for at least a 100 percent increase in the near term. In case of short-term correction, UNI price will find a solid support level above $14, before continuing with the bullish outlook.

Market Impact

The notable bet on the Uniswap token to continue in a bullish outlook ahead will trigger a similar sentiment for the DeFi space, which has grown to over $138 billion in market cap and a 24-hour trading volume of around $11.4 billion. Already, most of the CEX and DEX-focused crypto tokens have signaled an imminent bullish breakout toward a new all-time high soon.