Uniswap Price Analysis: Can UNI Hit $100?

Uniswap (UNI) has been on a tear, with its price rising for five consecutive days. The token reached $12.37 on Monday, November 25, marking its highest level since April 1. This represents a gain of over 150% from its lowest point this year. In this analysis, we will examine the factors driving Uniswap’s price surge and explore the possibility of UNI hitting $100.

Key Drivers of Uniswap’s Price Surge

1. Decentralized Exchange (DEX) Dominance: Uniswap is one of the leading DEXs, with over 20 chains supported and a trading volume of over $26 billion in the past seven days. Since its launch, the platform has processed more than $1.54 trillion, including $81.7 billion in the last 30 days.
2. Layer-2 Solution: Unichain: Uniswap has introduced Unichain, a layer-2 solution currently in its testnet phase, with the public mainnet expected by late 2024 or early 2025. Unichain aims to provide a better alternative to Ethereum, Solana, and Arbitrum.
3. Prominence in the DEX Industry: Uniswap’s prominence in the DEX industry has been highlighted by crypto analysts, such as HypeManAlex, who estimated a possible surge to $100, a 733% jump.

Technical Analysis

The daily chart indicates that UNI has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other. This pattern is often considered a bullish signal. Additionally, a cup and handle pattern is also evident, characterized by a rounded bottom followed by consolidation. This pattern suggests a potential bounce to $17 in the near term.

Bullish Outlook

A rise to $100 in 2024 appears unlikely, as it would require a 733% increase from the current level. However, if the bulls can sustain the momentum, a short-term target of $17 is achievable. To invalidate the bullish outlook, a drop below the $9 support level would be required.

Whale Activity

Despite the bullish outlook, whale activity remains a concern. Data on Etherscan shows that one whale moved over 466,000 UNI tokens worth $5.4 million to OKX, an important step of selling it. Another whale moved tokens worth $1.29 million to Coinbase. This suggests that whales are still selling UNI, which could put pressure on the price.

Conclusion

Uniswap’s price surge is driven by its dominance in the DEX industry, the introduction of Unichain, and its prominence in the market. While the technical analysis suggests a potential bounce to $17 in the near term, a rise to $100 in 2024 appears unlikely. However, if the bulls can sustain the momentum, a short-term target of $17 is achievable. Whales selling UNI remains a concern, which could put pressure on the price.

Actionable Insights

1. Buy UNI: For short-term traders, a target of $17 is achievable. However, for long-term investors, a rise to $100 in 2024 appears unlikely.
2. Monitor Whale Activity: Whales selling UNI remains a concern. Monitoring whale activity will provide insights into the direction of the market.
3. Stay Informed: Keep an eye on Uniswap’s developments, including the launch of Unichain, and stay informed about market trends and analysis.

Remember, cryptocurrency markets are highly volatile, and prices can fluctuate rapidly. Always conduct thorough research and consider your risk tolerance before making any investment decisions.