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Uniswap Price Might Be Poised For Rally — DeFi Season On The Way?

Published April 22, 2024 1:42 PM
Nikola Lazic
Published April 22, 2024 1:42 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • UNI is recovering after whales withdrew tokens from exchanges.
  • Growing interest may position Uniswap to lead DeFi rally.
  • UNI’s increasing TVL suggests a potential price rebound.

 Uniswap’s UNI token has made a 22% recovery from its recent low, regaining $8 after 10 days. On-chain data suggest whales are on the move and are withdrawing the token from exchanges at a higher rate. Once the leader in DeFi, Uniswap could a lead new DeFi rally, because there has been a notable interest in other cryptocurrencies in the sector. 

Uniswap (UNI) Fundamentals 

According to Spot On Chain , a whale recently withdrew 121,871 UNI tokens, valued at approximately $954,000, from Binance, signaling a lack of intent to sell soon, which is generally a bullish indicator of the token’s price.

Netflow chart

This withdrawal comes after UNI experienced a sharp decline to below $6 on April 13. This followed an announcement by the United States Securities and Exchange Commission (SEC) about a potential lawsuit against Uniswap Labs. Despite negative sentiment around UNI, we investors used  this opportunity to stack up on the token

At its lowest recent point on April 15, a negative 1.09 million UNI was withdrawn more than deposited, indicating accumulation. In the following days, this metric was hovering around its 0 threshold by is again turning negative on Saturday, April 22. 

Uniswap TVL

Uniswap’s Total Value Locked (TVL) has also increased by 138% in the last 30 days, reflecting growing trust and investment in the protocol. This increase in TVL suggests that UNI’s price may approach its historical highs if the trend continues.

DeFi Season On The Horizon? 

The whale also removed Compound (COMP) tokens from Binance, hinting at a broader interest in DeFi tokens. This sector has yet to be a significant narrative in the current market cycle, dominated by memecoins, Real World Assets, and AI tokens. However, the recent movement could signify a shift.

DeFi market cap

With most DeFi-considered tokens showing a positive curvature and an overall increase of 1.74% in the sector’s market cap, we might see this narrative developing. 

Uniswap (UNI) Price Analysis 

UNI reached its yearly high of $17 on March 5 from a low of $5.60 on January 24. This was most likely the end of a five-wave impulse which started at $3.80 on October 19 last year. 

Daily chart

A 62% downturn happened, with the price falling below its support to $6.50 on April 13. The price dropped even further, leaving a wick on the daily chart and moving to where its last upward advancement began. 

As it found support at the 0.786 Fibonacci retracement, a 26% recovery followed. The daily chart Relative Strength Index signaled overbought conditions and a potential price bottom. This was the same as the previous times when it came to these levels. 

If UNI’s corrective stage ended on April 13, this could be the beginning of an even more significant,rise. However, further confirmation is needed before assuming that is the case.  If the rise continues and pulls the price back up above $10 that could be a sign that UNI is now entering a new bullish stage that can lead the price to a new yearly high. 


Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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