By Franklin Smith
- Uniswap appears on the road to touch $25 after its latest downswing.
- On-chain metrics suggest a smooth ride beside a critical hurdle at $20.84.
- Meanwhile, a daily close under $17.75 will cancel this bullish narrative.
Current price actions suggest Uniswap is ready to reverse its downswing phase, targeting higher highs. UNI’s bullishness comes as market players expect the altcoin to enjoy a sharp rally as the cryptocurrency market witnesses a minor uptrend.
Uniswap to Continue Its Upswing
Uniswap witnessed its price rallying approximately 12% over the previous 24 hours. That came after the altcoin rose above its swing low at $18.73. The upsurge might fill the FVG (Fair Value Gap), extending towards $21.13 before the altcoin sails high to the resistance level at $22.36.
Meanwhile, the market maker’s initial target would be the buy-stop liquidity beyond these highs. There is another Fair Value Gap past this area, within the $22.49 – $24.51 range. That way, market players may expect Uniswap to sail through this price area without hassle. After that, market makers can aim for another buy-stop at $24.78. This upswing constitutes a 20% rise in UNI’s value.
Technicals suggest a bullish picture for the altcoin. Moreover, on-chain metrics confirm a similar case for Uniswap price. For instance, the 30-day MVRV model indicates that UNI has higher chances to surge in the upcoming trading periods.
The MVRV metric measures the average loss/profit by individuals that bought the altcoin over the last month. As the indicator hovers near -%5, it shows that UNI enthusiasts incurred losses. However, market participants accumulate assets in this area, confirming a lucrative region for Uniswap price growth.
Though everything seems up for UNI, bulls will encounter one hindrance on their uptrend journey. The IOMAP model displayed a massive sidelined investors around $20.84. At this level, nearly 6.680 addresses bought roughly 183 million UNI tokens.
These investors might threaten UNI’s upsurge as they might trim their holdings for breakeven purposes. Overcoming this level will cancel the sell-side momentum and catalyze upswings for Uniswap. If the coin faces denial at $20.84, UNI might plunge to $18.73, confirming sellers’ dominance. Such a case can have UNI producing a daily close under $17.76 for a lower low. That would overturn the bullish narrative.