Along with the Bitcoin pullback, most altcoins are struggling to hold their ground, with some altcoins not following the downtrend and even moving against it, with Uniswap [UNI] being one of them.

After rebounding from the key support level of $8.64, UNI has risen over 24%, testing the local high of $12 as of the time of writing.

The key question is whether UNI can build strength to break through this key resistance level and continue its upward momentum towards higher targets. Currently, Uniswap's technical setup seems to indicate that despite the initial pullback, the token may still break out.

Notably, as of the time of writing, the Uniswap stochastic RSI indicator shows the market is in overbought territory—historically, this signals a bearish trend.

However, in the context of UNI's current upward trend, this could actually be an overall bullish signal, with only a short-term pullback expected.

In a bull market, as momentum increases, overbought conditions typically lead to further price increases.

Whales and institutions are flocking to UNI.

Analysis of whale activity in altcoins shows that large transactions of UNI have surged, increasing by over 255% in the past 24 hours.

This indicates that institutional investors and large investors are increasingly interested, and they may be preparing for the next round of token price increases.

Short-term pullback or deep pullback?

Interestingly, according to IntoTheBlock data, the inflow of Uniswap exchanges has increased in the past 24 hours. This may suggest that market participants are preparing for a potential breakout, a factor that could add more bullish sentiment to UNI.

However, Santiment's data also shows that the number of UNI holders has sharply decreased since November 20. This may indicate that some investors are temporarily withdrawing or taking profits, which is generally a healthy sign during a bull market.

The combination of technical analysis and on-chain indicators provides an intriguing case for UNI's future price trajectory. Due to the altcoin's resilience against broader market weakness and a sharp increase in whale and institutional activity, this could be a long-awaited precursor to a breakout.

UNI price prediction: potential to double

The price trend of Uniswap shows early momentum for a triangle breakout. With seven consecutive bullish candles, the upward trend rose from $8.64 to a peak of $12.4, and the current price has pulled back.

The UNI token is currently challenging the previous volatility high of $11.13 again, approaching the $12 mark. Additionally, it is also testing the 100% Fibonacci level as it exceeds the 78.60% level near the psychological threshold of $10.

As early triangle breakout momentum strengthens, the bullish crossover of the 100-day and 200-day EMA enhances market sentiment. Additionally, the MACD and signal line have maintained a positive alignment after recent convergence, with the histogram showing an increase.

Therefore, based on the current upward momentum and Fibonacci retracement tool, the upward trend is likely to reach the $19.67 mark. This signifies a significant potential for nearly doubling, making it an exclusive investment choice for December.

In short

UNI has strongly rebounded from the key support level of $8.64, and on-chain indicators show increased interest from institutions and whales. This also suggests a bullish outlook.