Uniswap (UNI) is Firmly Fixed Among the DeFi Tokens Leaders and Moves to $8.29
The trading year on the Uniswap (UNI) market ends with great optimism. On 31 December, buyers broke free from the shackles of consolidation, which we wrote about in the previous article.
After breaking the range of $4.1-4.3, buyers organized the growth wave, thanks to which the UNI price rose by 67%. After setting a new local high of $6.84, the UNI price continued to move in the black growth channel. Before reaching the upper limit of the channel, buyers felt resistance in the range of $6.23-6.43.
The five-day consolidation of the price in the UNI market under this range forced buyers to retreat and give the local initiative into the hands of sellers:
Buyers keep the critical mark of $5.2
By the way, the sharp collapse of the UNI price on 11 January did not break either the global growth trend or the local attack of buyers. Having arranged a false breakout of the local growth trend from 24 December, sellers retreated.
As we can see, the mark of $5.2 we talked about in previous articles now plays a key role in the growth trend continuation. The daily candle closed above this mark on 11 January, which allows buyers to storm the liquidity zone $6.23-6.43 again.
If you look in detail at the market situation from 11 January, it becomes clear that sellers have exhausted their forces and are forced to retreat:
Pay attention to the trading volumes, after the wrong break out of the red trend line. All the bears have managed to do is touch the trend of buyers at low volumes.
Therefore, this fact gave confidence to buyers and soon we should see a test of $6.23-6.43. A successful buyers’ attack will give the prospect of the price growth to $8.29. And this scenario is greatly enhanced by analyzing the UNI trading volumes:
UNI trading volumes surge among the DeFi tokens
According to Coinmarketcap, the daily trading volumes on the UNI market are $2,227,082,604. This result allowed Uniswap (UNI) to become the leader among the DeFi tokens in daily trading volumes and to overtake LINK.
In addition to the prospects of the growth trend continuation in the UNI market, the number of investors who block their funds in the Uniswap project is also growing:
Nevertheless, in January the project regained its leading position in the DeFi space, taking 3rd place in the number of TVL ($2.51 billion) according to Defipulse.
Alternative Uniswap (UNI) price movement scenario
Despite the fact that the UNI market now looks the most promising among the DeFi tokens, its impact on the crypto market is quite small. So, the BTC price fall continuation is likely to lead the UNI price too.
If buyers lose the mark of $5.2, the correction in the UNI market will continue with the target of $4.1-4.3. Though, even this scenario fits into the global growth trend continuation, which has been going on since the beginning of November.
Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.
Defiye is the number one resource for DeFi news, blockchain news and crypto news. Our team of industry leading journalists publishes fresh and breaking DeFi news daily so readers can be sure to stay on top of the crypto market and the defi market, while making the most of their cryptocurrency trading, defi trading and blockchain activities.