Uniswap price made a strong bullish breakout, crossing an important resistance level at $12 and pointing to more gains in the near term. The UNI coin jumped to a high of $13.35 on Thursday, its highest level since March 15. It has risen by over 181% from its August low.
Uniswap price chart pattern points to more gains
The daily chart shows that the UNI price made a strong bullish breakout as it jumped above the key point of $12. This was an important level since it was the upper side of the cup and handle chart pattern. This pattern is characterized by a rounded bottom and some consolidation at the top.
The profit target in a C&H pattern is established by measuring the depth of the cup and then extrapolating it from the upper side. In this case, the depth of this pattern is about 53%. By measuring that distance from the upper side of the cup, we see the price target at around $18. This UNI price target is about 40% above the current level.
If this price is accurate, it means that the UNI price will need to move above the year-to-date high of $17.
The case for more upside is confirmed by the fact that the coin has formed a golden cross chart pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. This pattern happened on November 4. The last time that Uniswap formed a golden cross was in November last year when it was trading at $6.25. It then jumped to $17.
UNI soaring as DEX volume rises
The ongoing Uniswao price jump is mostly because the ecosystem is doing well. Data by DeFi Llama shows that the network handled over $28.86 billion in the last seven days, bringing its cumulative total to iver $1.56 trillion.
Uniswap has handled over $88.57 billion in volume in the last 30 days, its highest level on record. It has done better than Raydium, which has become a popular DEX in the Solana ecosystem.
Uniswap’s on-chain data show that the amount of tokens in exchanges has continued falling. Over 581 million coins are in exchanges, down from over 585 million a few weeks ago. Token movements out of exchanges are a sign that investors are moving them to wallets, which is a positive sign.
