Uniswap (UNI/USD) is showing bullish signs, but how far can it go?
Uniswap (UNI/USD) trades with weekly gains of 8%. Only a handful of cryptocurrencies have posted gains in the past week. A drop below the key support of $5.6 after the FTX collapse was quickly followed by a sharp recovery. That helped bulls to recapture the key level, with UNI trading at $5.8 as of press time.
The gains in Uniswap coincide with rising trading volumes post-FTX saga. On Monday, Ethereum transactions on the decentralised crypto exchange hit $1.21 billion. The volume represented an increase of over 80% in a day. The rising volumes indicated that traders were deploying their digital assets on alternative DEX platforms after the FTX collapse. Attraction to DEX platforms like Uniswap could support the native tokens, at least in the short term.
Meanwhile, new users on Uniswap’s Web App reached the highest in the year. A total of 55,550 Daily New Transacting Wallets were reported on November 15. Uniswap Labs attributed the milestone to the growing demand for self-custody wallets. Apparently, the growth in self-custody wallets has been attributed to a mass exodus of investors from centralised exchanges.
Uniswap retreating to the support after a strong recovery post-FTX dip
Uniswap found support at $4.8 after the accelerated selloff a week ago. The monthly high was set at $7.7 in previously building bullish momentum.
UNI/USD Chart by TradingView
The key technical level for UNI is $5.6. The cryptocurrency is correcting to retest the support zone after the recent breakout. The MACD indicator shows that momentum is still weak. However, momentum is improving, although bears are in control.
Should you buy UNI now?
UNI price recovery above $5.6 makes it attractive and likely to find higher levels. We should watch for bullish signals at the support as the token retests the level. The next targets for the cryptocurrency are $7 and $7.8.
On the flip side, if bulls fail at the $5.6 level, a continuation of the bear momentum could force UNI lower. The next levels to watch for the cryptocurrency will be $4.8 and $4.1.
Where to buy UNI
eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.
It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.
eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.
Buy UNI with eToro today
OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in.
OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked.
On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.
Buy UNI with OKX today