Uniswap Rallies 38% in a Week Amid Bullish Demand: Is There More to Come?
More from the Author Cal Evans
Uniswap (UNI) has surged 38% in a week, breaking past previous resistance levels to reach a five-month high, fueled by strong buying pressure and bullish sentiment.
With the $11-$12 range as the next resistance, UNI could climb further if support holds at $9 and buying momentum continues.
Uniswap (UNI), the decentralized exchange token, has made significant gains recently, with its price surging by a notable 38% over the past week. The rally has been driven by substantial buying pressure and renewed interest from investors, propelling UNI to a five-month high. With support and resistance levels in play, market sentiment appears optimistic for continued growth.
A Breakout from Resistance Levels
UNI’s recent performance shows it breaking past critical resistance levels that had capped gains in previous months. For instance, the token struggled to maintain momentum above $8 in September and October. However, November marked a pivotal shift as UNI confidently surged past this level. The bullish breakout beyond $8, a significant 78.6% Fibonacci retracement level, was a clear signal of strong buyer conviction.
On November 12, UNI experienced an impressive 17.46% surge within an hour, moving from $9.16 to $10.76. This swift jump followed several days of consolidation and ultimately solidified $9 as a new support level. Analysts and traders alike see this as a promising foundation for UNI’s ongoing uptrend.
Market Indicators Signal Further Upside Potential
Several technical indicators also support the bullish case for UNI. The daily price action chart reveals a positive market structure with the On-Balance Volume (OBV) indicator showing higher lows, indicative of consistent buying pressure. Furthermore, the Relative Strength Index (RSI) currently sits at 68, suggesting strong momentum without yet signaling an overbought condition, thus leaving room for additional gains.
Looking ahead, the Fibonacci retracement tool points to $9.93 and $11.29 as the next critical resistance levels. Traders are closely watching the $11 and $12 zones, which have attracted significant sell orders according to data from MobChart. However, a brief dip to test buy orders around the $9-$9.2 range may precede any further climb.
Will the Bulls Maintain Control?
With a strong foundation built on recent gains, the question remains: can UNI sustain its upward momentum? Current trends suggest that the token may be primed to test the $11-$12 resistance region, potentially within the coming weeks. This zone could act as a ceiling for the rally if large sell orders dampen buying pressure. Yet, if buyers continue to accumulate at lower levels, UNI’s rally could extend even further.
Conclusion: Is It Time to Buy?
While UNI’s recent price action presents a promising outlook, potential investors should remain cautious. The rally’s future depends on whether the support at $9 holds and if resistance at $11 and beyond can be broken. As always, prospective traders should consider their risk tolerance and conduct further analysis before making any moves.
The post Uniswap Rallies 38% in a Week Amid Bullish Demand: Is There More to Come? appeared first on Crypto News Focus.
