Uniswap, the decentralized finance token, has been on fire lately, boasting a remarkable 40% surge to a 4-month high. This outstanding performance stands out amidst the broader crypto market downturn.
While most major cryptocurrencies struggle to make gains, Uniswap has managed to break free from the downward trend, recording over 10% growth in the last 24 hours. This upward momentum has pushed the price of UNI to $8.66, a level not seen in 4 months.
This outstanding performance is mainly due to a significantly increased funding rate, reaching a monthly peak of 0.013%. This figure indicates strong demand for long positions on UNI perpetual futures markets. Long position holders must pay a premium to short sellers, a sign of a strong bullish sentiment.
Moreover, the Elder-Ray indicator, measuring the relative strength of buyers and sellers, shows a clear dominance of buyers. This technical signal further reinforces the prospect of a continued upward trend in the short term.
With this positive momentum, Uniswap could now set its sights on the resistance level at $9.46, aiming to turn it into a new support level. If this bullish breakthrough materializes, the path would then be clear for a test of the $10 psychological mark, a level not seen since mid-February.
However, a resurgence of profit-taking could challenge this optimistic scenario. A drop below the support at $8.07 would erase a significant portion of recent gains, opening the door to a more pronounced decline towards $7.08.
Ultimately, Uniswap’s performance, in line with technical indicators, reflects the resilience of this DeFi protocol in the face of a gloomy market environment. Diligent investors will closely monitor the evolution of the UNI token in the upcoming sessions.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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