Following a robust defense of the $8.75 support level, Uniswap [UNI] has showcased notable resilience, leading to an impressive 8% upsurge.
The recent price movements of this digital asset indicate a resurgence of bullish sentiment in the market.
Positive Signs from Technical Breakout
Uniswap has broken out from an ascending triangle pattern, a commonly recognized signal that precedes a bullish trend.
Over the past week, UNI has repeatedly tested the $8.75 support level after breaking out of a consolidation phase, solidifying this range as a significant demand area for the altcoin.
The successful defense of this level signifies a strong presence of buyers supporting Uniswap’s price.
Encouraging Metrics from Uniswap’s Network Activity
An analysis of the on-chain data reveals a remarkable surge in Uniswap’s network activity, with active addresses witnessing a staggering 520% increase in the past 24 hours, indicating heightened user participation.
The spike in large transactions, which surged by 143%, highlights a growing interest from whale investors in UNI.
The uptick in both active addresses and large transaction volumes points towards escalating institutional interest in the coin.
This surge in network engagement often foreshadows sustained price movements, as heightened trading usually leads to increased price discovery.
Key Liquidation Threshold on the Horizon
Coinglass’s report on liquidation heat map data reveals a substantial concentration of positions near the $9.73 price level, with around 430K UNI facing potential liquidation.
This liquidation pool could potentially attract UNI prices towards higher levels, favoring long position holders and potentially propelling Uniswap into a bullish trajectory.
While both Uniswap’s technical indicators and on-chain metrics portray a bullish outlook, the $9.73 resistance level stands as a critical barrier.
A successful breach above this level might trigger a cascade of liquidations, setting the stage for further upward momentum.