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Uniswap – Why the $10-level could be critical for UNI’s future
In recent times, the DeFi space has been dominated by various tokens and platforms. However, one of the most significant players in this sector is Uniswap, which has seen its price surge over 18% in the last 24 hours. The sudden rally has led to speculation about whether the $10-level could be a critical point for UNI’s future.
As it stands, the cryptocurrency has cemented its position within the top 100 by market capitalization as per CoinMarketCap data. With whales controlling approximately half of the supply, their actions have become increasingly influential in the market, particularly at a time when DeFi tokens are seeing an ecstatic rally.
The recent price surge above $9 and subsequent flipping to $10 has been met with mixed reactions from traders. A whale took the opportunity to take profit on its UNI trade, selling off approximately 662,606 tokens and securing a tidy sum of $1.87 million in profits. Despite this sell-off, it is essential to note that the momentum behind UNI’s price action remains strong.
This surge can be attributed, at least in part, to Uniswap’s blockchain network, Unichain, which has been gaining considerable traction with its DEX volume reaching $718.52 million as of the time of writing. This is a significant increase compared to previous days and may signify growing investor interest and network engagement.
In terms of technical analysis, it can be seen that UNI’s price chart recently broke out of a broadening wedge pattern that started forming on May 10th. This breakout does suggest bullish potential; however, traders are advised to exercise caution until this rally is confirmed by further action in the market.
While we cannot ignore the possibility that this move could be a false breakout, it appears that the cryptocurrency’s on-chain activity is rising. This increase in investor interest and trader engagement may potentially lead to a bounce above $10 and the continuation of UNI’s uptrend.
It remains uncertain whether the price will stay above or fall below the $10 mark at the time of writing. However, considering the market sentiment and Uniswap’s on-chain activity, it is possible that we could see further gains in the coming days.
In conclusion, with all these factors in mind, it can be deduced that UNI’s price action has become quite volatile. While there are potential risks associated with any trade, traders must consider both the short-term and long-term implications of their decisions.
Source: ambcrypto.com
