Uniswap (UNI) price has increased by 7% in the past week as more cryptocurrency investors turn to Decentralized Exchanges (DEXs) for their transactions. With institutional investors leading the way, the spike in transactions has raised expectations for a potential rebound in UNI’s price.
Over the past two weeks, DEXs like Uniswap have experienced a significant surge in transaction volumes. This spike coincided with the crackdown by the US Securities and Exchange Commission on major centralized exchanges (CEXs) such as Coinbase and Binance.
Following a disappointing performance last week, the surge in transactions now seems to be translating into substantial price gains for Uniswap’s native UNI token. The key question now is whether the large investors will continue to support UNI and drive it towards a sustained price rebound.
Uniswap Transaction Volumes are Increasing
Investors, market participants, and industry players are increasingly using Uniswap for their cryptocurrency transactions. Notably, the daily transactions involving UNI have nearly quadrupled compared to last week’s figures.
The chart below illustrates the rise in transaction volume, which surged by 400% from $9.44 million on June 9 to $46.7 million on June 13.
The Transaction Volume metric represents the total value of UNI transactions conducted on a given day. An increase in this metric indicates growing economic activity and market share for the underlying blockchain network.
Historically, Uniswap’s price has often risen following a sustained spike in transactional activity. If this trend continues, UNI holders may anticipate a sustained price rebound towards $6.
Whale Investors are Driving the Market
After taking bullish positions during last week’s significant price retracement, Uniswap whales are now returning to the market. Between June 4 and June 14, the count of daily UNI whale transactions increased by 700% from 9 to 80.
The Large Transactions metric measures the trading activity of whale investors by tracking the number of daily confirmed transactions exceeding $100,000 in value.
Given the substantial buying power of whales, their increased trading activity can absorb selling pressure in the market. This could encourage other strategic investors to believe that UNI has reached its bottom price.
In summary, the growing transaction volume and bullish trading activity among whale investors are crucial factors that could trigger a price rebound for UNI.
UNI Price Prediction: Potential Rebound to $6
If the negative sentiment surrounding centralized exchanges persists, UNI’s price could rebound towards $6 in the coming weeks. However, for the bulls to regain confidence, UNI must break above the initial resistance level at $5.
According to IntoTheBlock’s Global In/Out of The Money Around Price (GIOM) data, there are 19,860 investors who bought 25.51 million UNI at an average price of $4.95. These investors could potentially cause a price pullback.
But if Uniswap manages to surpass that resistance zone, it could reach the $6 price target.
However, if the bears gain control, the price rally could be invalidated if Uniswap’s price unexpectedly drops below the crucial support zone at $4. Nevertheless, the presence of 6,270 investors who purchased 8.2 million UNI at an average price of $4 is expected to prevent a significant drop.
In the worst-case scenario, if that support level cannot hold, UNI’s price could retrace towards $3.
Disclaimer
In accordance with the Trust Project guidelines, this article provides information for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to providing accurate and unbiased reporting, but market conditions can change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
