Uniswap has finally broken its silence after a prolonged consolidation period as the price recently surged above crucial resistance lines. UNI witnessed a remarkable 17% rise, surpassing the performance of the crypto market. While the exact reason for this surge remains unknown, analysts point towards a recent proposal from StableLab, a governance service provider. This proposal aims to allocate 10 million UNI from the DAO’s treasury to delegates who are currently underrepresented, a move that could be influencing this uptick.
Holders Rushed To Book Profits
Following the resignation of Changpeng Zhao as the CEO of Binance and the appointment of Richard Teng as his successor, there’s growing hype that interest in DEX like Uniswap will surge. Moreover, CZ will also be spending more time in the DeFi space.
This surge in interest is reflected in Uniswap Protocol’s impressive monthly trading volume, which has reached $14.25 billion in November so far. This figure marks the highest since June, when the protocol recorded a volume of $16.20 billion—a record that might be exceeded by month’s end.
Moreover, this increased bullishness for Uniswap is seen in the daily trading volume for UNI, which has hit $497 million. The recent surge in UNI’s value has significantly increased its market capitalization, adding over $750 million and bringing the total to nearly $5 billion. This marks its highest point since August. However, there’s a rising bearish threat as holders are increasingly selling their assets to lock gains. IntoTheBlock data states that the Netflow has turned positive and it currently trades at 207K Uniswap.
This rise in exchanges can create a strong selling and has the potential to slow down the current surge of the price.
What’s Next For UNI Price?
Uniswap experienced a notable rise, surpassing multiple resistance marks today. However, the price is currently witnessing a surge in profit-taking activity among holders as it faces minor rejection near the high of $6.6. As of writing, Uniswap price trades at $6.2, increasing over 16% from yesterday’s rate.
UNI price has been strongly trading above the 20-day Exponential Moving Average (EMA), signaling a robust buying pressure from the bulls. The buyers are expected to make another attempt to breach the resistance at $6.6 and target a high of $7.8. However, the current price level is witnessing domination from bears, which might soon result in a correction below the Fib channels.
As a result, if the price fails to sustain above $5.5 and declines again, it would indicate that bearish forces are still influential at these higher price levels. In such a scenario, sellers might try to drive the price down further, below the crucial support level of EMA20. A breach of the $4.7 level could potentially lead to a sharp drop towards the critical $3.6 support line.
