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Key Insights:
- Uniswap price has moved into a bull market after soaring by double digits from the year-to-date high.
- The UNI token is about to form a golden crossover pattern on the daily chart.
- Uniswap futures open interest and funding rate have continued rising.
Uniswap price rally continued on Monday as the crypto market bull run gained steam. UNI also surged and neared its golden cross as its futures open interest, decentralized exchange volume, and Unichain growth gained steam. This article explores why it is eyeing more upside in the near term.
Uniswap Price Nears Golden Cross Formation
Technicals suggest that the UNI price is on the verge of a strong bull run this year. The daily chart shows that it has formed a giant double-bottom pattern at $4.7237, its lowest point in August and April this year.
The Double Bottom is one of the most common bullish reversal patterns in technical analysis. It is made up of two distinct bottoms and a neckline, which, in this case, is at $19.46, its highest point in November last year.
Uniswap price has rebounded and has already flipped the important resistance at $8.6655, its highest point in June. It also soared above the 23.6% Fibonacci Retracement level at $8.11.
Most importantly, the UNI token is about to form a golden cross pattern. That’s a unique pattern that forms when the 50-day and 200-day moving averages cross each other. It often leads to more gains over time.
The coin has invalidated the highly bearish rising wedge chart pattern. It forms when an asset has two ascending and converging trendlines. Therefore, technicals suggest that the UNI price will have a bullish breakout.
The next target level is the 50% retracement point at $12. It is about 30% above the current level.
UNI Futures Open Interest Surging
One potential bullish catalyst for the Uniswap price is that demand for the token is soaring. For example, the daily trading volume on Monday jumped by 200% to over $966 million.
At the same time, the futures open interest has been in a gradual uptrend in the past few months. It bottomed at $159 million in April this year, and then jumped to over $673 million.
Open interest is an important metric in the futures market that looks at the volume of unfilled call and put trades. A higher figure sends a signal that there is high demand and liquidity.
Unichain and Uniswap Growth is Gaining Steam
Meanwhile, Unichain, the layer-2 network that Uniswap launched in March, has continued to gain momentum.
Its total value locked (TVL) has jumped to over $1.22 billion, making it one of the biggest chains in the industry. Unichain has overtaken some of the most popular chains in the industry, like Hedera Hashgraph, Cardano, Algorand, and Near Protocol.
The same is true with the amount of cryptocurrencies that its protocols are handling per day. Data shows that the protocols in its chain stood at over $6 billion in June, and has now moved to over $3.1 billion this month so far.
Uniswap’s volume has also done well this year. It handled over $71.2 billion in transactions in the last 30 days and $2 billion in the last 24 hours.
UNI Supply on Exchanges Has Plunged
The other bullish catalyst for the UNI price is that the balances of these tokens on exchanges have plunged. This supply dropped to 79.62 million on Monday, down from the year-to-date high of 86 million.
Crashing tokens on exchanges is a sign that investors are largely bullish and are no longer selling their tokens. In line with this, its funding rate has remained in the positive zone, a sign that investors expect the future price will be higher than where it is today.
Uniswap price has rebounded in the past few weeks as the crypto market has bounced back. The token has more upside as the funding rate rises, supply on exchanges has dropped, while the golden cross pattern is about to form. These fundamentals and technicals point to more gains later this year.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
