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Key Insights:
- Uniswap crypto price is about to form a golden cross pattern.
- It also slowly forms a rounded bottom chart pattern.
- Unichain is growing, while its funding rate is gaining steam.
Uniswap crypto price staged a strong comeback this week, becoming one of the best-performing tokens. UNI jumped to the psychological point at $10.90, its highest point since February 2nd, and 125% above it lowest point this year.
Uniswap Crypto Price Technical Analysis Signals Rally Has More Upside
The daily timeframe chart suggests that the UNI price has more gains in the coming weeks or months. This chart shows that the token bottomed at $4.595 in May and started a gradual comeback as the crypto market bull run intensified.
While it is too early to tell, this rounded bottom could be an early sign that it is slowly forming a cup-and-handle pattern. In this case, the upper side of this cup is at $19.48, the highest point since November last year. A climb to that level would be a 90% surge from the current level.
The Uniswap crypto is about to form a golden cross pattern, one of technical analysis’s most bullish chart patterns. This pattern happens when an asset’s 50-day and 200-day Exponential Moving Averages (EMA) are about to cross each other. Historically, this pattern normally leads to double-digit gains.
UNI price has crossed the 38.2% Fibonacci Retracement level at $10.30, signaling that the bullish momentum is continuing. More technicals suggest that the coin has more gains ahead. For example, the Relative Strength Index (RSI) has formed an ascending channel since March this year.
The MACD indicator has remained above the zero line since May 9, while the Supertrend indicator has turned green. Therefore, the token will likely continue soaring, with the next level to watch being the 50% retracement at $12. A cross above that level will raise the possibility of it jumping to $19.
Unichain Growth is Continuing
One potential catalyst for the Uniswap crypto price is that Unichain, the layer-2 network it launched in March, is doing well as it gains traction among developers and investors.
Data compiled by DeFi Llama shows that it has become the second-biggest layer-2 network in the decentralized exchange (DEX) industry. The network handled over $717 billion in the last 24 hours and $7.4 billion.
The biggest dApps in the ecosystem are DEX networks like Uniswap, Velodrome, Timeliness, and Garden. It has handled over $6.15 billion in July so far, a few points below the $6.1 billion it handled in June, meaning it will cross it this month.
Unichain is also growing in other areas. For example, its total value locked (TVL) in its DeFi ecosystem jumped 7.7% in the last 30 days to $1.2 billion, while its stablecoin supply jumped to over $448 million.
Interestingly, Unichain is now four months old and has already passed other popular chains like Cardano and Near Protocol.
Soaring Funding Rate and Open Interest
The other bullish catalyst for the Uniswap price is its bullish funding rate and soaring open interest.
CoinGlass data shows that the eight-hour funding rate has remained in the positive side since July 7, and is gaining momentum. This data is a sign that traders in the futures market believe that its future price will be higher than where it is today.
More data reveals that the open interest rate in the future has also increased. It jumped to a high of $584 million on Friday, with most of it being on Binance. Surging open interest indicates strong demand, which points to more gains.
Summary
Uniswap crypto price has been in a strong bull run in the past few months, and technicals and its strong fundamentals point to more gains in the coming months. The potential crypto bull run will boost this surge as demand for top tokens like Bitcoin and Ethereum jumps.
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.
