In a week of consolidation in the cryptocurrency market, Uniswap’s native token UNI bucked the trend and rose more than 15% to break the $10 mark. The bull run continued amid positive developments in the Ethereum ecosystem and Uniswap’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Riding the Ethereum Wave
In addition to the legal dispute, the current momentum within the Ethereum ecosystem has also driven UNI’s price up. On-chain data shows that a large number of whales have withdrawn funds from cryptocurrency exchanges following the news of the possible listing of an Ethereum ETF.
This risk-off behavior, coupled with the overall bullish sentiment surrounding Ethereum, is having a ripple effect that benefits UNI, a key player in the Ethereum DeFi space.
From a technical perspective, UNI’s breakout from the monthly consolidation phase paints an encouraging picture. Both technical indicators and on-chain data suggest UNI’s price could surge by 25%.
The token’s recent surge signals a potential bull run, with analysts’ price target at $12.80 if the current momentum continues.
Adding fuel to the fire is Santiment’s Age Consumed Index, which measures the movement of dormant tokens. Spikes in the index often precede price increases, and the latest surge in late April appears to have foreshadowed UNI’s current uptrend.
This on-chain metric reinforces the bullish outlook for UNI, suggesting that investors are realizing its potential.
Bulls take over, short sellers suffer heavy losses
The recent price rally has also been accompanied by a significant increase in trading activity. Data from Coinalyze shows that Uniswap liquidations exceeded $1 million in the past day.
The majority of these liquidations (over $750,000) were short positions, suggesting that traders shorting UNI are feeling the pinch. Open interest has surged, with more and more traders going long UNI, further strengthening the bulls’ grip on the token’s price.
Uniswap against the SEC
This show of defiance has given confidence to investors, who see it as a positive sign for the future of Uniswap. The popular decentralized exchange (DEX) recently received a Wells Notice from the regulator alleging that UNI is a security. However, Uniswap has vowed to challenge the claim, claiming that the SEC’s allegations do not hold water.
The SEC’s case against Uniswap remains unresolved, and a negative outcome could dampen investor sentiment. A broader market correction could still impact UNI’s price.