3 Reasons Why Uniswap Price Recovery May Surpass $20
Highlights
- The UNI price breakout from the Inverted head and shoulder pattern will signal the uptrend continuation.
- The 100-day EMA slope acts as major pullback support for buyers.
- The 24-hour trading volume in the Uniswap token is $370.3 Million, indicating a 148% gain.
The crypto market witnessed a significant inflow earlier this week, following the lower-than-expected CPI data from the US Fed. However, most of the major cryptocurrencies along with Bitcoin and Ethereum failed to sustain this upswing indicating a lack of bullish conviction and potential for prolonged consolidation. Among the few, the Uniswap price showed notable resilience with a three-day rally to reclaim the $10 mark.
Below are three reasons why the UNI token could lead a rally above $20.
Also Read: Uniswap (UNI) Price Gives Strong Breakout Above $10, How Far Will the Rally Continue?
Uniswap Achieves $300B L2 Volume Milestone in Record Time
In a recent tweet, Uniswap Labs shared a significant milestone in the all-time Layer 2 (L2) volume on the Uniswap Protocol. The cumulative volume has soared to $300 billion, reflecting the protocol’s impressive growth trajectory and adoption across the decentralized finance (DeFi) ecosystem. However, the growth rate is particularly noteworthy when broken down in the timeframe needed to acquire each $100 billion milestone.
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- 22 months to reach $100 billion
- 10 months to reach $200 billion
- Just 3 months to reach $300 billion
All-time L2 volume on the Uniswap Protocol:
22 months to reach $100B
10 months to reach $200BAnd just 3 months to reach $300B 🤯 pic.twitter.com/CQahuxJHQN
— Uniswap Labs 🦄 (@Uniswap) June 13, 2024
The rapid acceleration in the last phase, reaching $300 billion in just 3 months, highlights a significant uptrend in user adoption and transaction volume on L2 solutions. The continuous development should appeal to a broader audience and uplift natural demand for UNI tokens.
Also Read: Top Bitcoin (BTC) Trader Shock At This Ethereum Token’s Possible 1,228% Rally In 28 Days, See Why
UNI Holders Profitability Minimizes Panic Selling Risk
Amid the FUD surrounding the U.S. CPI data, the majority of major cryptocurrencies including Uniswap witnessed a sudden sell-off on Wednesday. However, unlike others, the UNI token’s drop to $8.73 immediately reverted with a three-day rally.
This bullish turnaround recorded a 23.5% upswing to $10.83 and surpassed Wednesday’s high of $10.4. A daily candle closing here will indicate the buyers have overthrown the sellers which may lead to further rally.
In addition, the data crypto analytics firm Intotheblock shows an optimist perspective as the majority of UNI Holders are in profit. Concerning the current trading price of $10.8, 51% of UNI holders are in profit while 49% are in loss. This distribution suggests a relatively stable investor base and reduced possibility of panic selling among traders.
Uniswap Price Eyes Major Reversal Amid Bullish Reversal Pattern in Play
An analysis of the daily chart shows the UNI token consolidation of the past three weeks assisted in developing an inverted head and shoulder pattern. This reversal pattern commonly spotted at the market bottoms hints at a major reversal.
If the current bullish momentum persists, the UNI price should breach the overhead neckline resistance and flip it to potential support. As per the dynamic for In H&S pattern, the post-breakout rally could bolster the asset to surpass the $17.5 barrier and target a $24 high.
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