UNI’s Wild Ride: Will It Hit $10 or Just Fall Flat? 🤔💸

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So, here we are, folks. UNI is throwing up some early signs of a bullish reversal. I mean, who knew? An inverse head and shoulders breakout is forming on the daily chart. Sounds fancy, right? But let’s not get too excited just yet.

According to some data from crypto.news (because, of course, we trust everything we read online), Uniswap (UNI) has surged over 20% in the last 24 hours. It hit an intraday high of $7.6 on May 29. That’s nearly 57% higher than its April low. I mean, come on! It’s like watching a kid on a sugar rush. And guess what? Its market cap is now around $4.4 billion. Who knew a little token could be so popular?

And wait, there’s more! Its daily trading volume shot up by more than 200% to surpass $1 billion. I guess everyone decided to jump on the bandwagon. The derivatives market is also buzzing, with open interest climbing 20% to a record $514 million. Sounds like a party, right? Positive funding rates usually mean traders are all in for more gains. Or they’re just really optimistic. Who knows?

Technicals suggest more upside (or not)

From a technical standpoint, UNI looks like it’s ready for more gains. It’s broken out of multiple bullish patterns on the daily chart. I mean, it’s like it’s trying to impress someone.

UNI broke out of that inverse head and shoulders pattern and confirmed it with a bullish engulfing candle on Thursday. Sounds like a fancy dinner, doesn’t it? And to top it off, the 20-day and 50-day moving averages just formed a golden cross. Typically, that’s a buy signal. But let’s not get ahead of ourselves.

UNI has also broken above a multi-month downtrend of lower highs and lower lows. It’s like it finally decided to stand up for itself. The SuperTrend indicator has flipped bullish and is currently below the price. Another signal for more upside. Or maybe it’s just playing hard to get.

If this breakout holds, the inverse head and shoulders pattern suggests a potential move up to around $10. That’s about 37% higher than where we are now. And it lines up with the 61.8% Fibonacci retracement level. Sounds significant, right? Or just a coincidence?

Now, a major bullish driver behind UNI’s recent rally is UniswapX. It’s a new feature designed to optimize swaps by routing them through the best available source. It’s like having a personal shopper for your crypto. It lets multiple fillers compete to offer users the best price. Because who doesn’t love a good deal?

And guess what? Big investors, or as I like to call them, whales, have started accumulating UNI in large amounts. According to data from Santiment, the number of addresses holding between 10,000 and 1 million UNI has jumped recently. This kind of accumulation usually signals growing confidence among large investors. Or maybe they just have a lot of spare cash lying around.

Short-term pullback still on the table (surprise, surprise)

But hold your horses! Despite all the bullish drivers and strong technical setups, there’s still a key resistance level to watch around $7.87. That marks the 78.6% Fibonacci retracement. It could act as a short-term hurdle, leading to some consolidation or a minor pullback before the next leg up. Because why not throw in a little drama?

And on the downside, if UNI drops below $6.5, it could invalidate the current bullish breakout pattern. In that case, the price might retrace further toward $5.81. That coincides with the 50-day simple moving average and could serve as a key support level for buyers to step back in. So, it’s a rollercoaster ride, folks! Buckle up! 🎢

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2025-05-29 11:29