- The tightening of UNI’s Bollinger Bands and the near-overbought RSI indicate a possible breakout above $8.38.
- Market sentiment remains positive as large trades and open interest show bullish momentum.
Uniswap [UNI] has firmly established itself as a leader in decentralized finance, handling over $2.4 trillion in trading volume and generating over $8 billion in economic value. With an impressive $2.7 billion in gas fees paid, its significance within the Ethereum ecosystem is undeniable.
UNI was trading at $8.02, up 3.23% at the time of writing, and has caught the attention of traders. But the question remains: can UNI break out of its recent range and spark a bullish rally?
UNI Map Analysis: Approaching a Critical Point?
Looking at the daily chart, UNI has seen consistent consolidation within a narrow range in recent months. Bollinger Bands indicate that the price is tightening, often signaling an impending breakout.
Additionally, the Relative Strength Index (RSI) stands at 58.90, just outside the overbought zone, suggesting UNI could see further upside if buying pressure continues.
However, if the token fails to break the resistance at $8.38, it could face continued sideways action, or worse, a retracement.
Source: TradingView
Signals in the chain: mostly bullish, but is it enough?
The on-chain data for UNI presents a compelling, largely bullish case. The ‘In the Money’ statistic shows that 0.91% of all addresses are profitable, indicating positive sentiment among investors.
Additionally, large transactions are up 8.25%, indicating growing interest from larger investors. This is a promising indicator of potential bullish momentum.
However, there is a small problem: the net network growth, although only a decline of 0.17%, indicates some hesitation in new participants joining the network. While the on-chain data supports a bullish outlook, this slight dip in growth is something to watch.
Source: IntoTheBlock
Analyzing open interests: A flurry of activity
UNI’s open interest is also rising, up 3.91%, bringing the total to $122.69 million. As a result, more traders open new positions, and this often serves as a harbinger of increased volatility.
With open interest increasing, coupled with the technical indicators and on-chain metrics, the possibility of a bullish breakout is becoming increasingly likely.
Source: Coinglass
Is your portfolio green? View the UNI Profit Calculator
Considering the technical characteristics and signals on the chain, UNI seems ready for a breakout.
While the slight decline in network growth calls for caution, growing open interest and strong performance on other metrics suggest that UNI could soon break through its current resistance levels.
Credit : ambcrypto.com
