Uniswap’s UNI Surges Over 15% as Whale Withdraws $1.96M from Binance
In a week marked by consolidation across the cryptocurrency market, Uniswap’s native token, UNI, has defied the trend, surging over 15% and surpassing the $10 mark. This bullish run comes amid positive developments within the Ethereum ecosystem and Uniswap’s ongoing legal battle with the US Securities and Exchange Commission (SEC).
Table of Contents
Riding The Ethereum Wave
Beyond the legal battle, the current momentum within the Ethereum ecosystem is also propelling UNI’s price upwards. On-chain data reveals significant whale withdrawals from crypto exchanges following news of a potential spot Ethereum ETF.
A fresh wallet withdrew 213,166 UNI ($1.96M) from Binance just recently. This flight to safety, coupled with the overall bullish sentiment surrounding Ethereum, is creating a ripple effect that benefits UNI, a key player within the Ethereum DeFi landscape.
Technical Breakout Indicates Strong Bullish Momentum
From a technical standpoint, UNI’s breakout from a monthly consolidation phase paints a promising picture. Both technical indicators and on-chain data suggest a potential 25% price increase for UNI. The token’s recent surge indicates a potential bull run, with analysts eyeing a price target of $12.80 if the current momentum continues.
Adding fuel to the fire is Santiment’s Age Consumed index, which measures the movement of dormant tokens. Spikes in this index often precede price rallies, and the latest uptick by the latter part of April seems to have foreshadowed UNI’s current uptrend.
Short Sellers Get Burned As Bulls Take Charge
The recent price rally has also been accompanied by a significant rise in trading activity. Data from Coinalyze reveals over $1 million in Uniswap liquidations in the last day. The majority of these liquidations (over $750,000) were short positions, indicating that traders betting against UNI are feeling the heat. This surge in open interest, with more traders going long on UNI, further strengthens the bullish control over the token’s price.
Uniswap Takes A Stand Against The SEC
This display of defiance has instilled confidence among investors, who view it as a positive sign for Uniswap’s future. The popular decentralized exchange (DEX) recently received a Wells notice from the regulatory body, alleging that UNI is a security. However, Uniswap has vowed to challenge this claim, asserting that the SEC’s case is weak.
The SEC case against Uniswap remains unresolved, and a negative outcome could dampen investor sentiment. A broader market correction could still impact UNI’s price. However, the recent developments indicate a strong bullish sentiment around Uniswap’s regulatory outlook.
Uniswap’s Upside Momentum and ERC-7683
Uniswap’s upside momentum has also strengthened amid the unveiling of ERC-7683. This new token standard is a collaboration between Uniswap Labs and Across Protocol and aims at streamlining cross-chain trading via a “unified framework for cross-chain intents systems.”
UNI Surges After Uniswap’s Response to the SEC
Breaching the critical $10 mark also came amid a rising bullish sentiment around Uniswap’s regulatory outlook. Earlier this week, Uniswap Labs reiterated its readiness to fight the SEC’s potential lawsuit following a recent Wells Notice. According to Uniswap, the SEC is “wrong” in its assertions that the DEX platform is an unregistered securities exchange and broker-dealer. The allegation that UNI is a security is also wrong, with the SEC’s theories around it “weak,” Uniswap wrote in a response to the regulator.
Uniswap Price Chart Analysis
Uniswap’s surge in the past 24 hours saw UNI break out of a consolidation phase that had prices capped below the $8 level. Increased whale activity and the current projections for the ETH ecosystem favor UNI bulls. The technical picture also supports an upside continuation. In this case, the RSI and MACD indicators on the daily chart suggest bulls are in control. If this outlook holds, UNI price could eye the key resistance levels at $12.96 and $15.40. An important short-term target lies at $12.
Conclusion
While the broader cryptocurrency market continues to consolidate, Uniswap’s native cryptocurrency UNI has made a strong move, rallying more than 17% and shooting past $10. The major reason behind this Uniswap price rally has been that the decentralized exchange (DEX) has initiated a firm stand in its legal battle with the U.S. Securities and Exchange Commission. The combination of bullish technical indicators, positive on-chain data, and a strong stance against regulatory challenges positions UNI for continued growth in the near future. If the current momentum continues, UNI could see new heights, making it an attractive investment in the volatile crypto market.
