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The native token of Uniswap, UNI, has bucked the trend in a week of consolidation across the bitcoin market by rising over 15%, above the $10 threshold. Positive changes in the Ethereum ecosystem and Uniswap’s continuous legal struggle with the US Securities and Exchange Commission (SEC) define this optimistic run.
Riding The Ethereum Wave
Beyond the legal dispute, UNI’s price is rising thanks in part to the present enthusiasm within the Ethereum community. On-chain data shows substantial whale withdrawals from crypto exchanges following announcements of a possible Ethereum ETF.
Another fresh wallet withdrew 213,166 UNI($1.96M) from #Binance just now.https://t.co/u15CE864hm pic.twitter.com/kyOBv0TB5G
— Lookonchain (@lookonchain) May 24, 2024
Along with the general positive attitude about Ethereum, this flight to safety is having a knock-on effect that helps UNI, a major participant in the Ethereum DeFi scene.
Technically, UNI’s departure from a monthly consolidation period has a bright future. Technical signs as well as on-chain data point to UNI maybe raising their price by 25%.
The token’s recent advance suggests a possible bull run; assuming the present trend keeps, analysts see a price objective of $12.80.
Fuel for the fire comes from Santiment’s Age Consumed indicator, which tracks inactive token movement. Usually preceded by price swings, spikes in this indicator seem to have foretold UNI’s present rise by late portion of April.
This on-chain indicator suggests that investors are waking to UNI’s potential, therefore supporting its optimistic view.
Short Sellers Get Burned As Bulls Take Charge
Moreover accompanying the recent price surge has been a notable increase in trading activity. Data from Coinalyze exposes almost $1 million in Uniswap liquidations over the last day.
Over $750,000, most of these liquidations were short positions, meaning traders opposing UNI are under fire. More traders going long on UNI and this increase in open interest help to enhance the bullish control on the price of the token.
Uniswap Takes A Stand Against The SEC
Investors, who saw this act of rebellion as a hopeful indication of Uniswap’s future, have gained confidence from it Recently the regulatory agency issued a Wells notice to the popular distributed exchange (DEX), claiming UNI is a security. Uniswap has promised to contest this assertion, nevertheless, claiming that the SEC’s case is weak.
Uniswap’s SEC complaint is still pending, hence a negative result could sour investor attitude. UNI’s price can yet be affected by a larger market corrections.
Featured image from Wallpapers, chart from TradingView
