Uniswap Breaks Months-Long Stagnation with 35% Surge: An Imminent Push Towards $10?
- Uniswap price recently surged 35%, reclaiming the $9.09 support level.
- A potential Golden Cross could signal a continued bullish momentum, with the next potential resistance zone around $10.06.
- Failing to hold $9.09 support may lead to UNI pulling back toward $8.23.
Uniswap has experienced a remarkable 35% price rally, rebounding to the $9.09 support level. According to the daily chart, this level has been out of reach for several months.
After a prolonged period of sideways movement since early July, this sudden upward momentum in Uniswap has caught the attention of many investors.
One of the most notable aspects of this rally is the strong performance of daily on-chain transactions. A significant portion of Uniswap transactions in the last 24 hours have been profitable, according to Santiment's data.
Source: Santiment
This profitability keeps the market active, as investors who see consistent returns are more likely to continue trading.
The rise in price also means more liquidity for Uniswap, which strengthens its position in the decentralized finance (DeFi) ecosystem.
Adding to the bullish sentiment, its 24-hour trading has surged significantly by over 600%. This and high liquidity suggest that these coming days will likely remain bullish for UNI.
Golden Cross Signals Potential Bullish MomentumUniswap's recent price action has brought it closer to forming a Golden Cross, a pattern seen when the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA. It often signals a potential end to bearish momentum and the start of a bullish trend.
Currently, Uniswap's 50-day EMA (yellow line) is still below the 200-day EMA, indicating bearish conditions. Meanwhile, the 20-day EMA (red line) has successfully crossed above the 200-day EMA, suggesting that the upward momentum is increasing.
Also, the 35% surge has reduced the space between the 50-EMA and the 200-EMA, setting the stage for a Golden Cross to emerge.
If this bullish pattern materializes, it could attract more attention from investors, as the Golden Cross is often seen as a strong indicator of future price increases.
The MACD is strongly above its signal, and the histogram bars are green, supporting the bullish sentiment.
Uniswap's Next Target: Breaking the $10.06 ResistanceUniswap's immediate challenge is to break through the $10.06 resistance level. This price point has been a significant barrier for UNI, and flipping it into support could lead to further price gains.Uniswap is trading at $9.10, just below this crucial resistance level.
If it successfully breaks through $10.06, the next target could be $10.50 or even higher. Surpassing this level would invite more buyers into the market, strengthening the bullish momentum.
However, failure to maintain the $9.09 support level could trigger a pullback. In this case, Uniswap's price might drop toward $8.23, invalidating the current bullish outlook.
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