Unisawp the first DeFi to pass $100b in volume: UNI reaches $33
- UNI reached an all-time high of $33 before retracing slightly.
- The cryptocurrency pushed up as a result of strong fundamentals.
- Uniswap's short-term future depends on whether its daily candle closes above or below $29.79.
Uniswap (UNI) recorded a day of massive gains that brought its price above $30. What should you expect next, and should you buy some UNI now?
Fundamental analysis: a confluence of factors brings UNI to $30
Uniswap (UNI) saw a major price surge on Saturday as the cryptocurrency reached $30. The reason for the price increase is a confluence of factors, including the increase in total value locked (TVL), the increase in interest in the DeFi sector as a whole, as well an increased influx of traders on all exchanges.
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Uniswap, as the largest decentralized exchange on the market, was the first DeFi exchange to pass $100 billion in trading volume:
UNI posted week-over-week gains of 41.50%, outperforming both BTC‘s week-over-week gains of 17.62% and ETH‘s 8.45% gain. Uniswap is currently the 12th-largest cryptocurrency by market cap, boasting a value of $8.95 billion.
At the time of writing, UNIM is trading for $29.6, which represents a price increase of 67.35% when compared to the previous month’s value.
UNI/USD technical analysis: UNI reaches a new milestone as it passes $30
While Uniswap has been in an uptrend since late December 2020, the real price spike began on Saturday as UNI went from just above $19 to $33. The cryptocurrency seems to react to the 21-day EMA, as this moving support seems to be quite respected in recent months.
However, with UNI’s price being so far away from its moving averages, it can only rely on the Fib retracement levels. The cryptocurrency needs to post a daily candle above the 23.6% Fib retracement level in order to remain bullish. However, with drastically reduced volume and current price action on smaller time-frames, that may be unlikely.
UNI’s RSI on the daily time-frame has just entered the overbought territory, with its current value currently sitting at 75.99.
Zooming in to the hourly time-frame, we can see UNI’s volume skyrocketing and price skyrocketing as the cryptocurrency broke $22. The price managed to pass $30, and post an all-time high of $33. However, UNI is now posting higher lows and lower highs as it follows the 21-hour EMA, indicating a strong move coming soon.
UNI is currently fighting for the 23.6% Fib retracement level of $29.79. However, the lower highs and descending volume make a better bear case in the short-term.