Here’s What Needs to Happen for Uniswap Price to Hit $20

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs, parabolic moves, and market crashes. However, the current setup on Uniswap (UNI) is something that has piqued my interest more than any other coin in recent memory.

On a daily basis, Uniswap’s price seems to be shaping a well-defined bottom pattern, indicating a potential surge. Financial experts anticipate that if certain crucial indicators align, the value of UNI could skyrocket, possibly reaching $20.

Let’s explore what needs to happen for Uniswap to hit $20.

Here’s Why UNI Price Could Go Parabolic And Hit $20

For most of this year, Uniswap’s price has been holding steady, but the current surge in the crypto market has hinted at its significant growth potential. Moreover, a remarkable spike occurred on Tuesday, with Uniswap increasing by more than 15%, reaching $12.65 at the time of writing. This rise supports the notion that it may continue to climb and reach $20.

On October 10, Uniswap Labs debuted Unichain, a potential game-changer for DeFi, characterized as a Superchain. Unichain is a second layer chain on Ethereum designed to improve DeFi transactions. It focuses on boosting scalability, accelerating transaction speed, and slashing transaction fees by about 95% compared to the primary Ethereum blockchain. This has significantly increased UNI, its native token’s value within the DeFi sector. The token serves a purpose in staking, validation, and network governance for Uniswap, playing a crucial role.

In May’s late days, the Uniswap Foundation delayed an election on a plan to switch transaction fees indefinitely. But with the surging optimism within the crypto world, there are whispers that this proposal might be revisited for voting. If approved, it could bring significant changes to Uniswap, as it would allow for sharing a section of decentralized exchange (DEX) transaction fees among UNI token holders who have staked and delegated their assets.

As Unichain enters the scene, it’s an exciting turn of events. Let’s explore the insights that Uniswap price prediction offers regarding the near-term prospects for its token.

Uniswap Price Analysis: Can UNI Hit $20?

Analyst AmdTrades, known for his insights, has recently made daring predictions about UNI’s potential price, estimating it could reach as high as $25. The analyst suggests that for a significant surge, UNI’s value needs to close above $12 in the weekly candlestick chart, which could lead to a strong breakout. If this happens, it might draw in investors who have been on the sidelines, potentially pushing Uniswap’s price towards the $20 region.

The study’s foundation lies in a prolonged accumulation over the weekly chart, resulting in a well-defined basin shape. With the value surpassing $12.06, this suggests an imminent explosive surge beyond the pattern boundary, potentially sparking a significant price increase.

Based on his assessment, the price might surge up to $29.37, but it could experience pullbacks or dips at approximately $23.52 and $17.52 along the way.

Though the analyst’s perspective on Uniswap’s price trend is positive, let’s delve into some blockchain statistics as well, which suggest a bright future for UNI too.

On-Chain Data Shows Key Level UNI Needs to Overcome

As an analyst, I’ve been closely monitoring the UNI market and noticed that based on on-chain analysis data, UNI might be poised for a breakout beyond the $12 territory. The Global In/Out The Money (GIOM) indicator from IntoTheBlock indicates that approximately 8,000 addresses have bought around 390 million UNI at an average price of $12.76. This significant group of holders, making up nearly 38.92% of the total, are the ones who originally purchased UNI at this price level. Therefore, if UNI manages to surpass $12.76, a substantial portion of these holders will be in profit with minimal incentive to sell.

This perspective aligns with the analyst’s belief that UNI could end its weekly candle above $12.

Above this point, approximately 43.86 thousand addresses that bought around 138 million UNI tokens at an average cost of $25.42 are currently “underwater” (or “out of the money”). If Uniswap’s price reaches this level, it would prompt these investors to sell in order to break even. Consequently, there may be a significant surge in selling pressure between the prices of $21.86 and $28.37, where these investor groups amassed their UNI tokens. Notably, this potential price range correlates with AmdTrades’ predicted target of around $20.

To sum up, Uniswap’s price appears ready to surge towards the $20 region. However, it’s at a pivotal moment where it must maintain its upward trend for $12.76 to become a supportive level instead of a resistance one. At present, Uniswap is trading slightly below this point at $12.65, which could trigger a more volatile phase for UNI.

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2024-11-27 19:12