Uniswap up 15% in 24 hours – More gains likely?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• UNI was up 15% in the past 24 hours at the time of writing.
• Supply on exchanges eased; active addresses were muted.

Uniswap [UNI] recovered all June losses but has hit a key price level. It was up about 15% in the past 24 hours at the time of writing. But it has hit a key resistance level of $5.41, which could temporarily delay further rally.  

Read Uniswap’s [UNI] Price Prediction 2023-24

A recent report indicates that Uniswap’s incentives on Optimism [OP] posted mixed results on the liquidity and DeFi sector fronts. However, UNI remained firmly bullish on the price charts and could seek extra gains if it clears this roadblock. 

Is a bullish breakout likely?

Source: UNI/USDT on TradingView

Measured from the range-low on 12 June up to the intersection of the range-high and the $5.41 resistance level, UNI has hiked about 35% in the past two weeks. 

When the D1 charts are zoomed out, the overall price action chalked a descending channel (white). Key price levels lay below the $5.4 resistance zone (cyan) and the supply zone (red) of $6.3 – $6.6 (red). 

With the RSI making a foray into the overbought zone and improved capital inflows (rising CMF), UNI could attempt to surge further. Hence, UNI could smash the $5.4 resistance and rally towards the supply zone of $6.3 – $6.6 (red), offering a potential 20% hike. But bulls must clear another hurdle of $5.69. 

Conversely, a rejection at the confluence of the range-high and resistance level of $5.4 could tip sellers to gain entry and look for gains at $4.7 or range low.

Supply on exchanges eased, but …

Source: Santiment

According to Santiment, UNI’s supply of exchanges dropped sharply on 9 June and moved sideways from mid-June. It shows short-term selling pressure eased as the amount of UNI moved to CEX (centralized exchanges) for offloading reduced. 

How much are 1,10,100 UNIs worth today? 

However, the trading volumes, shown by the active addresses (yellow bars), remained low compared to the number seen during the 9 June drop. A bullish breakout could delay for a while – but the bullish BTC could offer MATIC bulls a head start. 

If so, a pullback retest on the $5.4 could offer new buying opportunities, targeting the supply zone of $6.5.