The Ethereum-based decentralized exchange Uniswap (UNI) has seen a good amount of network activity with strong selling pressure in recent times. However, popular crypto analyst Ali Martinez recently reported that Uniswap could be gearing up for a trend reversal very soon.
Popular crypto analyst Ali Martinez reported that Uniswap is on the verge of a potential breakout as a substantial 87.56% of UNI holders are currently “Out of the Money.” Investors are witnessing a scenario where selling pressure has seemingly worn out, and a robust support level has formed at approximately $4, leading to renewed optimism among UNI stakeholders.
The analyst further added that notably, there is a notable increase in the count of substantial $UNI transactions, indicating a surge in activity from institutional investors and prominent UNI holders at the current price marks.
Analyst Ali Martinez explained that although Uniswap has established a crucial support level at $4, there remain two significant supply walls that must be surmounted to indicate a bullish breakout. The first barrier stands at $4.23, with 7,000 addresses collectively holding 14.24 million UNI tokens, while the second obstacle is at $4.45, where 2,000 addresses have accumulated 10.28 million UNI tokens.
The Relative Strength Index (RSI) implies the possibility of an 8% correction to $3.70 in the event that the $4.02 support level falters. A surge in selling pressure could drive UNI down to $3.35, resulting in a significant 17% decline.
Despite this bearish scenario, should buying pressure push UNI to a closing price above $4.38, it could negate this outlook and potentially trigger a 15% upswing to $5.04. This highlights the inherent volatility and unpredictability of the cryptocurrency market, underscoring the importance of investors staying vigilant and well-informed about these rapid fluctuations
