- Uniswap is nurturing an uptrend with a target at $5 amid improving technical indexes.
- According to Santiment, whales are on a buying spree, adding pressure to the tailwind.
Uniswap has recovered tremendously in November, spiking 143% from the monthly low at $1.75 to the recent peak at $4.27. The bullish outlook seems unstoppable, mainly due to a bull flag breakout observed on the 4-hour chart.
Uniswap nurtures upswing to $5
The decentralized finance (DeFi) sector is waking up from the trip made downstream in September and October. Uniswap is among tokens that are leading this recovery mission. However, resistance at the monthly peak has seen bulls lose traction and the price dive to $3.2 (recent critical support).
A bull flag pattern came into the picture and highlighted the possibility of the uptrend continuing. Meanwhile, UNI/USD has broken above the bullish pattern and is trading at $3.9 at writing. This pattern brings to light a potential upswing to $5 if the ongoing uptrend is sustained.
UNI/USD 4-hour chart
A golden cross pattern was recently formed by the 50 Simple Moving Average crossing above the longer-term 200 SMA, hence validating the uptrend. If UNI closes the day above the 100 SMA in the same 4-hour timeframe, the price may continue to rally upward as more buyers join the market in anticipation of liftoff to higher levels.
UNI/USD 4-hour chart
The buying pressure behind Uniswap has been rising over the last 30 days, according to Santiment. The number of whales holding between 100,000 and 1 million UNI increased from 121 to 132, while addresses boasting of 1 million to 10 million UNI rose from 49 to 52.
This increase may seem insignificant at a glance, but the volume moved by the whales is massive. Therefore, Uniswap is likely to continue with the rally if buying pressure from the whales intensifies.
 [09.37.54, 20 Nov, 2020]-637414510867978900.png)
Uniswap holder distribution chart
It is worth mentioning that the uptrend towards $5 depends on UNI's ability to hold above the 100 SMA on the 4-hour chart. Failure to do so might invalidate the bull flag breakout and pull the token to the support provided by the 50 SMA.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K
Cardano (ADA) price action ADA’s ongoing rally has been attributed to rumors that the Trump administration could collaborate with the Cardano network to build a blockchain voting system.
Trump administration allegedly seeks to create new crypto position in White House
President-elect Donald Trump and his team are reportedly seeking to introduce a new White House position for crypto policy, Bloomberg reported on Wednesday.
Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs
Solana price has succumbed to a 7% dip after rejecting the $250 resistance on Monday. Negative shifts in vital trading indicators suggest bears could delay the all-time high breakout target.
FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF
Floki Inu (FLOKI) is down 5% on Wednesday following crypto exchange Coinbase's announcement that the token will begin trading on its platform over the next 24 hours.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.