Oct 23, 2024

6thTrade

Uniswap (UNI) has seen a dramatic spike in its trading volume over the past 24 hours, jumping by 150% and surpassing $400 million for the first time in nearly 10 days. This surge follows a recent announcement from a major exchange listing new trading pairs for the popular altcoin.

How the Volume Surge Unfolded

Previously, UNI was available on the major exchange with only a Bitcoin (BTC) trading pair. However, the exchange recently expanded its offerings by adding Uniswap with new trading pairs, including the Korean Won (KRW) and USDT (Tether).

Before the announcement, Uniswap’s trading volume remained below $200 million, and its price hovered around $7.40. Shortly after the news, UNI’s price surged to $8.33, and trading volume skyrocketed to $470 million.

This surge reflects heightened interest from the Asian market, though this kind of reaction is not entirely unprecedented. Similar moves on the same exchange have had comparable results, with tokens like MEW and Injective (INJ) both seeing notable gains after their listings.

Network Activity on the Rise

The rise in trading volume was accompanied by a spike in network activity. The number of active addresses interacting with Uniswap saw a significant increase, indicating growing user engagement. Active addresses track the number of users successfully completing transactions on the blockchain, which can be a sign of rising interest in the token.

When active addresses increase, it’s generally seen as a positive indicator for future price movement, as more user engagement often drives demand. Conversely, a decline in this metric can indicate reduced interest, which could lead to a price drop if sustained.

UNI Price Prediction: Breaking Out of a Pattern

On the technical side, UNI’s recent rise above $8 signaled a breakout from a descending triangle pattern. A descending triangle forms when an asset’s price makes lower highs while establishing horizontal support. If the price breaks below this support, it can signal further downside, but UNI broke out to the upside, indicating a potential for more gains.

If the price holds above this breakout level, it could rise toward $9.04, with a bullish target potentially reaching as high as $11.51. However, in a bearish scenario where trading volume declines, the price could fall back toward $5.62. $UNI

What’s Next for UNI?

The coming days will be crucial for Uniswap’s next price move. If trading volume remains elevated and network activity stays strong, there’s potential for the token to continue its upward trajectory. However, a drop in volume or a decrease in active addresses could reverse the current momentum and send UNI back toward previous support levels.

For now, UNI’s strong performance highlights growing interest, particularly from the Asian market, as the token continues to capture attention on the global stage.

In summary, Uniswap’s recent rally showcases the powerful impact that new exchange listings can have on a token’s market performance. While the outlook appears positive, traders should keep an eye on volume and network activity to gauge whether UNI’s momentum will hold in the near term.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and can result in significant financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the opinions of the publisher or any affiliated parties. Investing in cryptocurrencies carries inherent risks, and past performance is not indicative of future results. Proceed with caution.