Uniswap (UNI) price is up 7% from last week as crypto investors increasingly turn to Decentralized Exchanges to carry out transactions. With institutional investors leading the way, can the transaction spike be sustained long enough to trigger a UNI price rebound? 

Over the last two weeks, Decentralized Exchanges like Uniswap have seen a significant spike in Transaction Volumes. The spike came as markets US Securities and Exchange Commission cracked down on major CEXs, including Coinbase and Binance. 

After a dismal performance last week, the transaction spike appears to have evolved into significant price gains for the native UNI token. Will the whales stick around long enough to power UNI into a sustained price rebound? 

Investors, market participants, and industry players have increasingly adopted Uniswap for cryptocurrency transactions. Indicatively, daily transactions involving UNI have almost quadrupled from the figures recorded last week. 

The chart below depicts how it rose 400% from $9.44 million on June 9 to $46.7 million transacted at the close of June 13.  

Quite literally, Transaction Volume sums up the dollar value of UNI transactions that occur on a given day. When it rises, it indicates growing economic activity as the underlying blockchain network gains market share.

Historically, Uniswap price has often increased whenever a sustained spike in transactional activity occurs. If this pattern reoccurs, UNI holders can anticipate a sustained price rebound toward $6. 

Read More: Top 11 Crypto Communities To Join in 2023

After taking hawkish positions during last week’s massive price retracement, Uniswap Whales, now appear to be returning to action. Specifically, between June 4 and June 14, UNI Whale Trasanctions Count spiked 700% from 9 to 80 daily transactions.

The Large Transactions metric evaluates the trading activity of whale investors by tracking the number of daily confirmed transactions that exceed $100,000 in value. 

Given the whale’s disproportionate buying power, their increased trading activity, as seen above, can soak up sell pressure. It could inspire other strategic investors to believe that the bottom is in for UNI. 

In summary, the growing transaction volume and bullish trading activity among whale investors are critical factors that could trigger a UNI price rebound. 

Read More: 6 Best Copy Trading Platforms in 2023

If the negative sentiment surrounding centralized exchange persists, UNI price could rebound toward $6 in the coming weeks. However, for the bulls to be confident, UNI must break above the initial resistance at $5.

According to IntoTheBlock’s Global In/Out of The Money Around Price (GIOM) data, 19,860 investors that bought 25.51 million UNI at the average price of $4.95 could cause a pullback. 

But if Uniswap scales that resistance zone, it could reach the $6 price target.

Still, the bears could invalidate the price rally if Uniswap price unexpectedly drops below the critical $4 support zone. Although, the 6,270 investors that purchased 8.2 million UNI at the average price of $4 will likely prevent the drop.

However, if that support level cannot hold, the UNI price could still retrace toward $3.

The post Uniswap (UNI) Eyes $5 Retest as DEX Transaction Volume Climbs appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

156 +