Uniswap Price Forecast: UNI on-chain metrics flip massively bullish as recovery builds momentum

Uniswap has sustained a gradual uptrend following February’s breakdown, slightly under $20. This lock-step trading has, however, hampered rapid price action. For now, the decentralized finance (DeFi) token is looking forward to a rebound after holding within the confines of an ascending parallel channel.

Uniswap persistently pushes for new all-time highs

UNI is trading at $31 after firmly holding the support presented by the ascending parallel channel’s lower boundary. A reversal is underway and is bound to continue as long as the immediate support endures.

On the upside, trading above the channel’s middle boundary will add credibility to the uptrend, extending the bullish leg towards $40. Note that the gap formed by the 50 Simple Moving Average (SMA) on the 4-hour chart suggests that Uniswap is in the bulls’ hands.

UNI/USD 4-hour chart

The bullish outlook is also confirmed by the increase in whales holding between 100,000 and 1 million UNI. Santiment’s holder distribution metric explicates that these whales have increased from 149, as recorded on February 13, to 160 at the time of writing, representing a 6.9% growth,

Note that the increment in the number of addresses holding the tokens may seem insignificant from the face value, but behind the scenes, the volume moved is colossal. A continuous uptrend of large volume holders would ensure that the tailwind behind Uniswap rises, reinforcing the technical breakout.

Uniswap holder distribution

The IOMAP by IntoTheBlock (ITB) points at UNI sitting on top of immense support. The robust buyer congestion runs from $28 to $29. Here, nearly 3,200 addresses had previously bought roughly 165 million UNI. It is doubtful that bears will slice through this zone for declines toward the 100 SMA on the 4-hour chart.

On the upside, the lack of formidable resistance zones shows that UNI will have a smooth ride to the new all-time high above $40. However, investors should anticipate delays between $31.8 and $32. Here, around 2,800 addresses had previously purchased approximately 16 million UNI. Trading above this zone will leave Uniswap with open-air to explore toward $40.

Uniswap IOMAP model

Looking at the other side of the fence

The 4-hour chart shows the Moving Average Convergence Divergence (MACD) with a bearish inclination. The MACD line (blue) has not recovered after crossing under the signal line. If the bearish picture remains intact, Uniswap may drop toward the 100 SMA. However, the 50 SMA will absorb the selling pressure at $29.5, perhaps stop the colossal downswing.