- Buying pressure behind UNI is growing, as reflected by the holder distribution metric.
- A daily close above the 50 SMA will help validate the upswing to $10.
- UNI is unlikely to breakdown from the current price levels based on the improving short-term technical picture.
Uniswap was not spared by the bearish wave which swept across the cryptocurrency market on Thursday. Declines extended from the $10 war zone to the confirmed support area at $7. However, the leading decentralized finance token did not stay down for long, as bulls quickly regained control, pushing UNI above $8.
Uniswap eyes liftoff to $10
UNI is doddering at $8 at the time of writing while dealing the resistance at the 50 Simple Moving Average and the descending parallel channel’s upper edge. Trading above these two levels will add credibility to the expected upswing.
The Moving Average Convergence Divergence is currently in negative territory. However, it is likely to add weight to the incoming uptrend if the 12-day moving average crosses above the 26-day moving average. The MACD calculates the strength of an asset’s trend. Thus, a step above the mean line will be a bullish signal for Uniswap.
UNI/USD 4-hour chart
Santiment’s holder distribution chart shows that over the past 22 days, buying pressure behind the DeFi token rose dramatically. The behavioural analytics firm recorded a significant spike in the number of addresses with millions of dollars Uniswap, commonly referred to as “whales.”
The number of addresses holding 100,000 to 1 million UNI shot up from 128 to 154 at the time of writing, representing a 16.8% increase in such a short period.
At first glance, the recent increase in the number of large investors behind Uniswap may seem insignificant. However, when considering that these whales move massive volumes of UNI, we begin to understand the sudden spike in buying pressure.
If the buying spree continues, UNI may have the ability to advance further and reach highs beyond $10 in the near term.
Uniswap holder distribution
On the downside, it is worth mentioning that failure to close the day above the 50 SMA would restart the bearish trend. The ascending parallel channel’s middle boundary support will be tested. If it gives in, Uniswap may extend the breakdown to the 100 SMA.
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.