Following an impressive rebound in November that confirmed macro bullish sentiment, Uniswap (UNI) has been consolidating over the past two weeks, providing more opportunities for buyers. Additionally, this mid-cap altcoin has a fully diluted valuation of around $16.5 billion and an average daily trading volume of about $657 million, attracting more institutional investors looking to diversify their cryptocurrency portfolios.
This practical, DeFi-based altcoin has risen over 160% since early November, breaking through the previous resistance level of around $16.5. Additionally, UNI/BTC has been trying to initiate a trend reversal, as the altcoin season shows early signs of entering a parabolic phase.
Uniswap whales are preparing for a significant price increase
According to on-chain data analysis provided by Santiment, over 800,000 UNI tokens (worth over $13 million) have been deposited into various cryptocurrency exchanges in the past two days. Earlier today, spot-on-chain identified a whale with $89 million in their crypto portfolio who deposited 1.49 million UNI worth over $24 million into the Binance exchange.
Earlier this week, the Uniswap team sent nearly 5 million UNI tokens to Coinbase Prime after more than four years of silence.
Medium-term Target
On the daily chart, the UNI to USD exchange rate has been retesting the key resistance/support level above $16, which could easily lead to the next bullish phase. Furthermore, the weekly Relative Strength Index (RSI) recently broke above the 70% level for the first time since the beginning of this year.
With the upward trend established over higher time frames, UNI's price is expected to rise at least 100% in the short term. If a short-term correction occurs, the UNI price will find solid support above $14 before continuing its bullish trajectory.
Market Impact
The apparent bets on the continued bullish outlook for Uniswap tokens will trigger similar sentiment in the DeFi space, which has seen its market capitalization grow to over $138 billion, with a 24-hour trading volume of around $11.4 billion. Currently, most crypto tokens focused on CEX and DEX have issued bullish signals of an upcoming breakout, poised to reach all-time highs.