Over the past month, Uniswap [UNI] has experienced a substantial surge in value, witnessing a remarkable 124% increase. Currently, UNI is trading at $15.55 with trading volumes exceeding $1 billion according to CoinMarketCap.
The bullish run of UNI has shown some signs of slowing down as Bitcoin [BTC] captured the spotlight by surpassing $100,000. Nevertheless, the altcoin remains in a bullish phase due to a surge in wallet profitability.
Data provided by IntoTheBlock indicates that over 60% of UNI holders are currently profitable, representing the highest level of wallet profitability since mid-2021.
As the number of profitable wallets rises and the rally shows signs of fatigue, traders typically begin selling to secure profits, potentially leading to a pause or even a reversal in the rally.
Increased UNI Exchange Inflows
Several traders are already cashing in on profits from UNI, coinciding with a surge in inflows to spot exchanges. According to CryptoQuant, Uniswap exchange inflows hit a one-week peak of 1.54M UNI, valued at over $24M, on December 4th.
This influx of exchange inflows aligned with UNI reaching an 8-month peak of $16.52, possibly indicating a local peak. Nonetheless, with negative netflows for the day, there seems to be sufficient demand preventing a reversal in trend, with active buyers supporting further price increases.
Overbought Levels in Uniswap’s RSI
Uniswap’s daily chart reveals that the altcoin is currently in overbought territory, as indicated by the Relative Strength Index (RSI) hitting 78. Historically, this could signal a forthcoming correction in the short term.
Simultaneously, UNI’s Chaikin Money Flow (CMF) has surged to 0.20, suggesting heightened buying activity unseen in months.
If buying momentum persists, UNI might climb towards the 1.618 Fibonacci level ($22.59), reaching its highest point since early 2022. Conversely, a drop below $14.45 could incite a fresh downturn in value.
Increasing Adoption Rate Indicates…
Recent data from IntoTheBlock depicts a gradual rise in the adoption rate over the past week, reaching 32.44%. This surge implies a growing number of new buyers embracing Uniswap.
The uptick in new Uniswap addresses indicates a sense of retail FOMO, potentially accelerating the upward trend and driving further gains for UNI.