Uniswap [UNI] continues to grow its dominance in the decentralized exchange (DEX) market, with its network activity soaring from 36.8% to an impressive 91.3% in 2024. This significant growth has attracted over 45.3 million users, solidifying its position as the leading DEX for user acquisition.

Meanwhile, a whale recently purchased 100,000 UNI for $1.42 million at a price of $14.24, underscoring strong investor confidence. As of the time of writing, UNI is trading at $13.35, having risen approximately 1.31% in the last 24 hours, with key price levels potentially determining its next direction.

Key levels to watch for a breakout

The price chart of UNI highlights the potential for a significant breakout, as a symmetrical triangle pattern has formed. This structure often heralds significant moves, and the retest of the $12 resistance increases the likelihood of a bullish outcome.

Breaking this level could propel UNI to $20 or higher, providing traders with substantial upside potential. However, the recent selling pressure on the chart highlights the importance of sustained buying momentum.

What aspects of network activity do the indicators reveal?

On-chain indicators show an optimistic outlook for UNI. The net network growth rate has risen by 0.22%, indicating a large influx of new users. Additionally, whale activity remains stable, with concentration increasing by 0.07%.

However, the 'in-the-money' indicator has dropped by -1.41%, indicating that some holders are taking profits. Large transactions have decreased by -5.59%, suggesting short-term caution. These mixed signals highlight the importance of monitoring whale movements and broader market sentiment to gauge UNI's trajectory.

UNI Exchange Reserve Analysis

Exchange reserves have slightly increased by 0.21%, totaling 70.22 million tokens. While this may imply less selling pressure, the low growth rate indicates that most holders have been maintaining their positions.

This seems consistent with the overall market pullback, although the significant increase in reserves may indicate bearish intentions.

Is the momentum strong or losing power?

Technical indicators further reveal the state of Uniswap as of the time of writing. The Average Directional Index (ADX) is at 26.77, indicating moderate trend strength. Meanwhile, the 9-day moving average is below the 21-day moving average, suggesting recent bearishness.

However, the symmetrical triangle highlights that a bullish crossover may soon ignite new buying interest.

Bull/Bear Ratio - Is the market leaning bullish?

As of the time of writing, UNI's bull/bear ratio stands at 1.073, with 51.76% of the buy volume favoring the bulls. This growing bullish sentiment suggests traders are preparing for a potential breakout. Additionally, the shift to long positions aligns with broader expectations of price increases.

However, maintaining this sentiment will depend on whether UNI can break through key resistance levels and sustain momentum in the coming trading days.

Is Uniswap ready for a breakout?

Supported by bullish on-chain signals and technical patterns, UNI's chart shows strong signs of breakout potential.

If UNI can decisively break above $14, it is likely to rebound to $20, solidifying its strength in the DeFi market. Thus, UNI may be poised for a significant increase, especially if key indicators and market sentiment are favorable.

In simple terms, UNI's price has formed a bullish triangle, indicating a potential for a significant breakout, with bullish on-chain indicators and increasing long-term sentiment suggesting a strong upward trend.