Uniswap rises more than 8% after testing key support level.
The 520% increase in active addresses indicates a growing acceptance of the network.
Uniswap [UNI] has shown significant strength after successfully defending the support level at $8.75 and subsequently achieving an impressive 8% increase.
The recent price action of this altcoin suggests that the bulls are regaining control of market momentum.
Technical breakout signals indicate upward momentum
Uniswap has broken out of a rising triangle pattern, a trading pattern that often precedes a price rally.
Since breaking out of the consolidation phase, UNI has tested the support level at $8.75 multiple times over the past week. This reinforces the support level as a significant demand zone for the altcoin.
Source: Tradingview
Successfully defending this level shows a strong presence of Uniswap buyers.
The Uniswap index is sending positive signals
TinTucBitcoin's analysis of on-chain data reveals a significant increase in network activity. Uniswap's active addresses have surged by 520% in just the past 24 hours, indicating a substantial rise in user participation.
Source: IntoTheBlock
This rapid surge in large trades coincides with a 143% increase in large transactions, reflecting growing interest from whales in UNI.
Source: IntoTheBlock
The significant increase in both active addresses and large trading volumes indicates growing interest from institutions.
This increase often precedes sustainable price movements, as heightened trading activity typically leads to higher price discovery.
Important liquidation levels ahead
Coinglass's report on liquidation heatmap data reveals a significant cluster of positions around the price level of $9.73, with approximately 430K UNI at risk of liquidation.
Liquidity Pool can act as a price magnet pushing the price of UNI higher, benefiting those in long positions. This further increases the likelihood of a potential price rally for Uniswap.
Source: Coinglass
Both the technical and on-chain indicators for Uniswap paint an optimistic picture. However, the resistance level at $9.73 remains a significant hurdle.
A successful breakout above this level could trigger a wave of liquidations, potentially boosting upward momentum further.
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