- A cup and handle pattern was spotted, indicating a 30% price rise ahead.
- Uniswap’s monthly volume surged to $38 Billion in November 2024.
Uniswap (UNI) has formed a cup and handle pattern following a period of consolidation. That conveyed signs of a potential breakout rally ahead. The Uniswap price showed a renewed strength in the past week, registering a 34% rise amidst bullish market sentiments.
Being at the core of everything, Uniswap saw incredible numbers, with $38 Billion in monthly trading volume by November 2024. This has risen from $20.32 Billion recorded in October, the highest it has gotten in the past eight months.
When writing, the UNI price was traded at $12.62, with a total supply of 1 billion. Furthermore, the asset’s market capitalization stood at $7.58 Billion.
The coming sessions could be crucial. This is because the technical chart setup suggested that the Uniswap price could retest the 52-week high zone shortly.
Consolidation Period Ends: Can We Expect a Breakout Soon?
A crypto analyst, Alex Clay, observed that the UNI crypto was hovering near the 0.23% Fib level of $13. He noted that the UNI price formed a cup and handle pattern and moved upward after 1000 days of consolidation.
Alex said the price could reach the 52-week high zone in case of a successful breakout. Moving forward, the mid-term targets of the Uniswap price were $28.4 and $45. At the same time, the long-term targets of $56.3 were also intact.
Impact of Ethereum’s Layer-2 Solutions on Uniswap
Ethereum’s Layer-2 scaling solutions contributed to the enormous increase in volume on Uniswap. As a result, decentralized trading is now faster and more efficient.
Platforms such as Arbitrum, Base, and Polygon contributed significantly to this boom on the DEX. Dune Analytics uncovered this.
Arbitrum was the largest of these, at a staggering $19.5 Billion. That accounted for nearly half of Uniswap’s monthly total. Coinbase supports a project called The Base. It produced $9.19 Billion.
Polygon produced $4.33 Billion at the same time. Together, these Ethereum Layer-2 solutions made transactions quicker and less expensive. High gas fees were one of the ongoing problems that were preventing DeFi usage on Ethereum’s mainnet.
Notably, the popularity of these Layer-2 platforms is more than just a passing trend or a new occurrence. It points to a larger movement toward scalable solutions to meet the market’s growing demands for decentralized finance.
Uniswap Price Prediction: Is a Rally Toward $16 Next?
Amid the significant surge in trading volume, Uniswap price prediction conveyed a possible breakout rally toward the $16 level. This week, a sharp bullish elephant candle was spotted on the daily timeframe, indicating the massive accumulation.
Additionally, a 6.92% surge in large transactions over the past 24 hours was noted. That signaled the whale buying activity. On the MACD histogram, the leading and lagging indicators displayed a positive crossover, indicating a buy signal.
In case of sustained bullishness, the Uniswap price could reach $13 and $13.80. At the same time, if the breakout fails, a significant decline toward $11.50 and $11 can be anticipated.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
