Uniswap Price Prediction – UNI Traders, When to Take Profits?

• Bullish expectations for Uniswap are excessive for this cycle
• Community metrics are nicely under their 2021 highs, suggesting additional progress is feasible

Uniswap [UNI]gave the impression to be exhibiting robust bullish conviction on the time of writing. Since November 20, the worth has risen 97%, whereas additionally breaking by way of a variety of necessary resistance ranges alongside the way in which. Open Curiosity additionally rose 12% in 24 hours – an indication of bullish sentiment.

Technical and on-chain statistics present that Uniswap is now on a powerful upward pattern. And much more beneficial properties might be anticipated within the coming months. That is regardless of UNI nonetheless being 61% under its all-time excessive at $44.9 as of Might 2021.

Key decrease highs have been retested as assist

Supply: UNI/USDT on TradingView

Uniswap bulls managed to climb previous the $17.05 degree that marked the March 2024 excessive. Alongside the way in which, the important thing decrease highs of that downtrend, set at $12.93 and #14.64, had been each retested as assist.

The OBV has risen sharply, as has the worth, demonstrating excessive demand. The RSI was in overbought territory on the time of writing, however had not but made a bearish divergence. A consolidation within the $16-$17 zone earlier than the subsequent leg might occur within the coming weeks.

The $15.45-$15.95 zone can also be prone to be a powerful demand zone if UNI’s worth had been to see a dip southward.

New addresses have but to begin the uptrend

Supply: DefiLlama

Within the earlier cycle, the launch of quite a few small cap cash on the Ethereum community introduced many new addresses making an attempt to commerce these tokens on Uniswap, the most important decentralized trade (DEX). An identical spectacle is now, and has been, happening on the Solana [SOL] community with its memecoin frenzy.

Rising new addresses and better participation result in rising charges, particularly through the later levels of the bull run. Should you evaluate 2021 to 2024, the brand new addresses depend and community prices had been under these highs.

Supply: Santiment

Whereas these figures advised that additional long-term progress was doable, different figures advised {that a} short-term downturn is probably going. Uniswap went by way of a distribution section in October and early November, characterised by the declining common coin age.

Learn the one from Uniswap [UNI] Value forecast 2024-25

In the meantime, the MVRV ratio shot up and reached its highest level in March, indicating rising profitability. This confirmed that the token could also be severely overvalued. Subsequently, merchants and traders should be prepared to take income and look ahead to a dip to purchase extra UNI.