Uniswap (UNI) is once again capturing market attention with a notable 5.33% price increase, hinting at a potential breakout. Key factors include changes in protocol usage and technical indicators.
On-Chain Activity Hints at Growing Strength
Despite a 4.1% drop in active addresses, Uniswap transaction volume has surged by 32%, indicating more frequent user interaction with the protocol. This divergence is often interpreted as a bullish signal, suggesting that while the number of active wallets is decreasing, participating users are making larger or more frequent moves. One catalyst is the rollout of UniswapX’s zero-gas limit orders, which allow users to execute trades without gas fees, potentially setting new standards for decentralized exchanges.
Market Behavior: Whale Caution vs. Retail Confidence
Meanwhile, large holder netflows have fallen 93% over the last month, indicating reluctance among major investors. Yet retail investors appear undeterred, with a 50.6% spike in exchange outflows suggesting a bullish accumulation phase as UNI is moved to cold wallets or DeFi protocols.
Technical Setup Supports Gradual Climb
CoinGlass data indicates modestly positive funding rates at +0.0062%, providing a stable foundation for a sustainable rally. If UNI pushes past the $7.80 resistance zone, it may trigger momentum buying, driving prices higher. Maintaining this trajectory will require Uniswap to continue delivering value while keeping larger investors engaged.
Uniswap stands at a pivotal moment, with innovations and rising activity aligning for a bullish move. However, overcoming resistance and restoring whale confidence are crucial for transitioning this rally into a sustained uptrend.
