Uniswap (UNI) surged 40%: Can it conquer 10 USD?

Uniswap (UNI) is proving its outstanding recovery capability amid the general bearish crypto market, with a strong rise to the sky of over 10% while most other major cryptocurrencies are stabilizing, reaching the highest price in the past four months, opening up opportunities for a strong bounce back.

UNI rises to the sky 40%, hitting a four-month high

The UNI/USD trading chart shows that this altcoin recorded an impressive 40% rise on June 10, closing at its highest level in the past four months at 8.66 USD. Although there was a slight correction afterwards and the price is currently trading around 8.28 USD, UNI still maintains a 22% increase for the week, indicating that the bullish trend is continuing and has strong potential.

The strong rise in the funding rate of UNI further reinforces this bullish trend. According to Coinglass, the current funding rate has reached a monthly high of 0.013%, reflecting the increasing demand for Long positions in the futures market of this token.

! UNI's funding rate | Source: CoinglassFunding rate is a recurring fee between traders in the perpetual futures market, which helps to adjust the contract price so that it is close to the spot price. When the funding rate is positive, this indicates bullish sentiment and strong demand for leveraged long trades, as long position holders have to pay the shorts.

In addition, the Elder-Ray index of UNI also supports the bullish outlook. On the daily chart, the momentum indicator recorded the highest green bar in a month, reflecting a surge in buying pressure. As of the time of writing, the Elder-Ray index of UNI is at 3.01, indicating the overwhelming strength of the buyers and a strong upward trend.

This indicator measures the strength between the buyers and sellers in the market, and when it displays a green bar chart, it means that the buyers are in control, reinforcing the likelihood that UNI will continue to hold its upward momentum in the short term.

Elder-Ray index of UNI | Source: TradingView## Optimistic outlook for UNI

With increasing buying pressure, UNI has the potential to conquer the resistance level of 9.46 USD and turn it into a solid support level. If this breakout occurs successfully, UNI could target the next goal of 10.25 USD – the highest price last recorded on February 17.

However, if profit-taking activities suddenly increase, this bullish outlook could be reversed. Strong sell-offs could pull the price of UNI lower, to around 8.07 USD, wiping out most of the recent gains.

If this support level cannot be maintained, UNI may face a deeper bearish trend, heading towards the price range of 7.08 USD.

LINK price chart | Source: TradingViewJustin

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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