3 Reasons Why Uniswap Price Recovery May Surpass $20

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As an experienced analyst, I believe that Uniswap’s (UNI) recent price action and underlying fundamentals make a compelling case for a potential rally above $20. The rapid growth in Layer 2 (L2) volume on the Uniswap Protocol, the profitability of UNI holders, and the emergence of bullish reversal patterns are three key reasons that support this view.

As an analyst, I’ve observed a substantial crypto market influx this week, spurred by the US Fed’s unexpectedly lower CPI data. Yet, many major cryptocurrencies, including Bitcoin and Ethereum, struggled to maintain their upward trend, pointing towards a weakened bullish sentiment and potential for extended consolidation. However, Uniswap price exhibited remarkable tenacity, recording a three-day surge that propelled it back above the $10 mark.

Below are three reasons why the UNI token could lead a rally above $20.

Uniswap Achieves $300B L2 Volume Milestone in Record Time

As a crypto investor, I’m thrilled to have been part of the Uniswap community as we recently hit an impressive milestone: a cumulative Layer 2 (L2) volume of $300 billion on the Uniswap Protocol. This growth is a testament to Uniswap’s robust expansion and its increasing influence within the decentralized finance (DeFi) ecosystem.

    • 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 $200B

And just 3 months to reach $300B

— Uniswap Labs (@Uniswap) June 13, 2024

As an analyst, I’ve noticed an impressive surge in the last quarter, with L2 solutions reaching a staggering $300 billion market cap within a mere 3-month span. This accelerated growth underscores a substantial increase in user adoption and transaction volume. The ongoing advancements in these platforms are expected to draw in a larger audience and boost organic demand for UNI tokens.

UNI Holders Profitability Minimizes Panic Selling Risk

Amidst the confusion caused by the U.S. CPI data, many major cryptocurrencies such as Uniswap experienced a sudden sell-off on Wednesday. However, unlike other tokens, the price of UNI dipped to $8.73 but quickly bounced back with a three-day rally.

3 Reasons Why Uniswap Price Recovery May Surpass $20

The price experienced a significant increase of 23.5%, reaching $10.83, which surpasses the previous high of $10.4 set on Wednesday. If the daily candle closes at this level, it suggests that buyers have regained control from sellers, potentially leading to further price growth.

As an analyst, I’d interpret the data from Intotheblock in this way: Based on their findings, over half (51%) of UNI holders are currently making a profit at the price of $10.8. This implies that a significant portion of investors have been making positive returns since their initial purchase. Consequently, the distribution of profits and losses among UNI holders appears relatively balanced. The reduced proportion of traders (49%) incurring losses suggests a more stable investor base, thereby diminishing the likelihood of panic selling.

Uniswap Price Eyes Major Reversal Amid Bullish Reversal Pattern in Play

3 Reasons Why Uniswap Price Recovery May Surpass $20

The UNI token’s price behavior over the past three weeks, as depicted in the daily chart analysis, has contributed to the formation of an inverted head and shoulders pattern. This technical configuration, frequently observed near market bottoms, suggests a significant price shift may be imminent.

If the current bullish trend continues, I believe the UNI price will break through the resistance level of the neckline in the head and shoulders (H&S) pattern and flip it into potential support. According to the dynamics of an H&S pattern, the post-breakout surge could boost the asset’s value beyond the $17.5 barrier and aim for a new high of around $24.

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2024-06-14 16:15