After an impressive rebound in November that confirmed the macro bullish sentiment, Uniswap (UNI) has been consolidating over the past two weeks, providing more opportunities for buyers. Furthermore, the fully diluted valuation of this mid-cap altcoin is approximately $16.5 billion, with an average daily trading volume of about $657 million, attracting more institutional investors seeking to diversify their cryptocurrency portfolios.
This utility-focused, DeFi-based altcoin has risen over 160% since early November, breaking through the previous resistance level around $16.5. Moreover, UNI/BTC has been attempting to initiate a trend reversal, as altcoin season shows early signs of entering a parabolic phase.
Uniswap whales prepare for a significant surge
According to on-chain data analysis provided by Santiment, over 800,000 UNI tokens (worth more than $13 million) have been deposited into various cryptocurrency exchanges in the past two days. Earlier today, spot-on-chain discovered a whale with $89 million in a cryptocurrency portfolio who deposited 1.49 million UNI into Binance, worth over $24 million.
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/USD exchange rate has been retesting the key resistance/support level above $16, which could easily lead to the next bullish phase. Additionally, the weekly Relative Strength Index (RSI) recently broke above the 70% level, marking the first time since the beginning of this year.
With the rising trend established over a higher time frame, the price of UNI is expected to rise at least 100% in the short term. If a short-term adjustment occurs, the UNI price will find solid support above $14 before continuing its bullish trend.
Market impact
The obvious bet on the continued bullish prospects of Uniswap tokens will trigger similar sentiments in the DeFi space, which has seen its market capitalization grow to over $138 billion, with a 24-hour trading volume of about $11.4 billion. Currently, most crypto tokens focused on CEX and DEX have sent out bullish signals indicating a breakout is imminent, likely setting new historical highs.
