• UniSwap breaks above a key descending trendline, opening the door for gains towards $5.5.
  • On-chain analysis reveals that whales are still stocking up on the crypto, hence the bullish momentum.

The decentralized finance (DeFi) tokens have retreated extensively in the past few weeks. However, the story is a bit different when it comes to the newly-launched UNI token, and perhaps it’s because it has only been in the market for a few days. UNI commenced trading on Binance around $0.25 on September 17. Later the price rallied to highs of $8.64. However, selling pressure gripped the token, resulting in losses that embraced support at $3.65.

UNI is a token launched by UniSwap, a fully decentralized blockchain platform, providing automated liquidity on top of Ethereum. According to a statement released by UniSwap, UNI was released for “enabling shared community ownership and a vibrant, diverse, and dedicated governance system, which will actively guide the protocol towards the future.”

UNI bounces off support to resume the uptrend

UNI is up over 20% in the last 24 hours, according to the data by CoinMarketCap. Following the support established at $3.65, the crypto bounced back, stepping above the 50 Moving Average (MA) at $4.2. An increase in buy orders pulled the price further up, but high congestion of sellers formed a barrier at $5.5. A retreat from this level held above the 50 MA, giving bulls a chance to regain control.

UNI/USD hourly chart

UNI/USD price chart

At the time of writing, UNI/USD is doddering at $4.95 after overcoming the tentative resistance at the 100 SMA in the hourly range. Moreover, UNI is trading above a critical descending trendline. The Relative Strength Index in the same hourly range is almost crossing into the overbought region. A move of such magnitude by the RSI would signal more buying orders as investors rush to capitalize on the expected gains.

IntoTheBlock’s IOMAP model reveals the presence of substantial resistance between $5.02 and $5.17. Based on this metric, 277 addresses previously purchased 10.68 million UNI. Bulls are likely to work hard and hopefully flip this zone into support. If that happens, UNI could extend the bullish leg beyond $5.5.

UNI IOMAP chart

UNI IOMAP chart

On the downside, UNI is sitting on robust support, presented by the 5,110 addresses that bought 37.4 million UNI in the range, $4.86-$4.99. It is doubtful that declines will break below this zone. However, if they do, the losses could stretch to the region between $4.56 and $4.64, where 354 addresses previously purchased 2.87 million UNI.

Consequently, Santiment’s holder distribution metric highlights that whales have not slowed down on increasing their UNI holdings. For instance, wallets holding between 100,000 and one million UNI have surged from 80 on September 17 to 123 on September 24.

A similar trend has also been recorded for whales holding one million - 10 million UNI, with thier number increasing from 25 to 34 in the same period. Intense buying pressure is behind UNI’s upswing and the whales' uptake of the token continues, we are likely to witness a surge in the value of UNI.

UNI holder distribution chart

UNI holder distribution

Looking at the other side of the fence

It is worth mentioning that resistance at $5.02 - $5.17, as highlighted by the IOMAP model, may prevent UNI from extending the upward leg to $5.5. On the other hand, retreat from the prevailing price level must hold above the 100 MA to avert losses that could retest the 50 MA support.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Lido Price Forecast: LDO eyes further gains as BitGo enables native ETH staking via Lido

Lido Price Forecast: LDO eyes further gains as BitGo enables native ETH staking via Lido

Lido DAO (LDO) edges higher by over 5% at press time on Friday, extending its five consecutive days in the green. LDO gains momentum following BitGo's announcement on Thursday of native Ethereum (ETH) staking via Lido for its institutional clients.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC nears all-time high, ETH eyes $4,000, XRP sets new record

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC nears all-time high, ETH eyes $4,000, XRP sets new record

Bitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.

Top Crypto Gainers: Hedera, Flare, Ripple – HBAR, FLR, XRP make waves with double-digit gains

Top Crypto Gainers: Hedera, Flare, Ripple – HBAR, FLR, XRP make waves with double-digit gains

Hedera (HBAR), Flare (FLR), and Ripple (XRP) continue to extend their double-digit gains from Thursday, outperforming the broader market over the last 24 hours. The surge in altcoins aligns with Bitcoin (BTC) reclaiming the $120,000 level and an improvement in broader market sentiment.

Trump to introduce crypto to $9 trillion retirement market: Financial Times

Trump to introduce crypto to $9 trillion retirement market: Financial Times

US President Donald Trump is preparing to sign an executive order allowing 401(k) accounts to invest in cryptocurrencies as part of their retirement plans, the Financial Times reported on Thursday.

Bitcoin: BTC sets sight on fresh all-time highs after US passes key crypto bills

Bitcoin: BTC sets sight on fresh all-time highs after US passes key crypto bills

Bitcoin (BTC) posted a strong performance this week, hitting a new all-time high of $123,218 to start the week before consolidating around $118,000 as of Friday.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP