Uniswap has finally broken its silence after a prolonged period of consolidation, as its price recently rose above crucial resistance lines. UNI witnessed a remarkable increase of 17%, surpassing the performance of the crypto market. While the exact reason for this increase remains unknown, analysts point to a recent proposal from StableLab, a governance services provider. This proposal aims to allocate UNI 10 million from the DAO treasury to delegates who are currently underrepresented, a move that could influence this revival.
Holders rushed to book profits
Following the resignation of Changpeng Zhao as CEO of Binance and the appointment of Richard Teng as his successor, hype is growing that interest in DEX such as Uniswap will increase. Additionally, CZ will also spend more time in the DeFi space.
This surge in interest is reflected in Uniswap Protocol’s impressive monthly trading volume, which has reached $14.25 billion so far in November. This figure is the highest since June, when the protocol recorded a volume of $16.20 billion – a record that could be surpassed by the end of the month.
Furthermore, this increased bullishness for Uniswap can be seen in the daily trading volume for UNI, which has reached $497 million. The recent increase in UNI’s value has significantly increased its market capitalization, adding more than $750 million and bringing the total to almost $5 billion. This is the highest point since August. However, there is a growing bearish threat as holders increasingly sell their assets to lock in profits. Data from IntoTheBlock shows that Netflow has turned positive and is currently trading at 207K Uniswap.
This rise in the stock markets could create strong selling and has the potential to slow the current price increase.
What’s next for UNI Prize?
Uniswap had a notable rise, surpassing multiple resistance points today. However, the price is currently witnessing a surge in profit-taking activity among holders as it faces a minor rejection near the high of $6.6. At the time of writing, Uniswap’s price is trading at $6.2, up more than 16% from yesterday’s price.
The UNI price was trading strongly above the 20-day Exponential Moving Average (EMA), indicating robust buying pressure from the bulls. Buyers are expected to make another attempt to break the resistance at $6.6 and target a high of $7.8. However, the current price level is witnessing bear domination which could soon result in a correction among the Fib channels.
As a result, if the price fails to hold above $5.5 and falls again, it would indicate that bearish forces are still influencing these higher price levels. In such a scenario, sellers could try to push the price further, below the crucial support level of EMA20. A break from the $4.7 level could potentially lead to a sharp decline towards the critical support line at $3.6.