Uniswap (UNI) has broken through a key psychological barrier of $10, marking a significant turnaround from its early 2024 performance. The leading DEX token surged past $10.18, recording a 3% gain in 24 hours and an impressive 11% weekly increase.
Market Performance Analysis
The recent price action shows strong momentum in the DeFi sector. UNI’s recovery comes after a challenging period where it dropped below $8. Despite the current rally, the token still faces headwinds from its broader timeframe performance, showing a 30% monthly decline.
Technical Outlook
A compelling Adam & Eve pattern has emerged on UNI’s hourly chart. This technical formation consists of two distinct troughs – a sharp V-shaped dip (Adam) followed by a rounded bottom (Eve). The pattern typically signals a bullish reversal.
Crypto analyst Ali Martinez identifies $10.1 as the crucial breakout level. A sustained close above this threshold could trigger a rally toward $13, representing a 30% upside potential.
Trading Volume and Market Sentiment
Trading activity has increased significantly, with volume metrics supporting the bullish thesis. The market sentiment appears to be shifting positive, aligning with the broader crypto market recovery.
DeFi Sector Implications
Uniswap’s price action could signal a broader DeFi sector recovery. As the largest decentralized exchange by volume, UNI’s performance often influences the entire DeFi ecosystem.
Risk Considerations
Traders should note that the bullish scenario depends on maintaining support above $10.1. A failure to hold this level could invalidate the pattern and lead to a retest of lower support levels.
Tags: #Uniswap #DeFi #CryptoTrading #UNI #TechnicalAnalysis
Source: NewsBTC