In a week marked by consolidation in the cryptocurrency market, Uniswap’s native token, UNI, bucked the trend, rising over 15%, and crossing the $10 mark. This bull run comes amid positive developments in the Ethereum ecosystem and Uniswap’s ongoing legal battle with the US Securities and Exchange Commission (SEC).
Riding the Ethereum wave
Beyond the legal battle, current dynamics in the Ethereum ecosystem are also driving UNI’s price higher. On-chain data reveals significant whale withdrawal from cryptocurrency exchanges following news of potential Ethereum spot ETF.
Another recent wallet took 213,166 UNI ($1.96 million). #Binance Exactly.https://t.co/u15CE864hm pic.twitter.com/kyOBv0TB5G
— Lookonchain (@lookonchain) May 24, 2024
This flight to safety, combined with the overall bullish sentiment around Ethereum, is creating a domino effect that benefits UNI, a key player in the Ethereum DeFi landscape.
From a technical point of view, UNI’s exit from the monthly consolidation phase looks promising. Both technical indicators and on-chain data suggest a potential 25% raise in UNI prices.
The token’s recent rally indicates a potential bull run, with analysts expecting a price target of $12.80 if current momentum continues.
Adding fuel to the fire is Santiment’s age consumption indicator, which measures the movement of dormant tokens. Jumps in this index often precede price increases, and the latest raise, which took place in the second half of April, seems to be a harbinger of the current upward trend in UNI.
This on-chain indicator reinforces the bullish outlook for UNI, suggesting that investors are starting to see its potential.
Short sellers are on fire as bulls take control
The recent price raise has also been accompanied by a significant raise in trading activity. Data from Coinalyze reveals that Uniswap liquidated over $1 million in the last day.
Most of these liquidations (over $750,000) were low positions, indicating that investors betting against UNI are feeling the heat. This raise in open interest, with more traders going long UNI, further strengthens bullish control over the token’s price.
Uniswap opposes SEC
This show of defiance has inspired confidence among investors, who see it as a positive sign for Uniswap’s future. The popular decentralized exchange (DEX) recently received a Wells Notice from the regulator alleging that UNI is a security. However, Uniswap said it would dispute this claim, saying the SEC’s arguments were tender.
The SEC’s case against Uniswap remains unresolved, and a negative outcome could dampen investor sentiment. A broader market correction may continue to impact the UNI price.
Featured image from Wallpaper, chart from TradingView
