Uniswap’s UNI token has faced intense selling pressure in recent weeks, hit particularly hard by the recent downturn seen around the world. aggregated DeFi sector.
However, this weakness is starting to turn in strength as buyers have sent crypto up nearly 100% from its recent lows.
The intensity of this recent uptrend indicates that bulls are on the cusp of a parabolic uptrend, with many of the so-called “blue-chip” DeFi assets all screaming higher lately.
There is an excellent catalyst that could also bolster Uniswap’s UNI this week. The UNI Reward LP pools that have been active in the past 57 days are about to drain.
The selling pressure resulting from these LP incentives was largely believed to have exerted immense downward pressure on the price of the cryptocurrency.
Once they end, there will be less daily selling pressure on the token, leaving room for rally.
Uniswap’s UNI meetings next to aggregated DeFi market
At the moment of writing, Uniswap’s UNI token is trading more than 20% at the current price of $ 3.58.
This marks the highest price the cryptocurrency has seen in weeks and is almost 100% above last week’s low of less than $ 2.00.
The intensity of this upward trend has come about in conjunction with that of other benchmark DeFi assets, including Yearn.finance’s YFI token, which is also up nearly 20% at the time of writing.
The ongoing DeFi explosion has come about without any noticeable strength from Ethereum, which remains a backbone for the industry.
If ETH can move higher and break past the USD 500 resistance, assets like Uniswap’s UNI may soon climb together.
Analyst: UNI is likely targeting USD 4.00 as Bulls take control
An analyst explained in a recent tweet he now looks forward to the price of UNI rising to $ 4.00 in the near term, noting that the chart looks “quite attractive.”
UNI – It’s been starting to look very attractive for a long time. Long the triangle break szn. “
Image Courtesy of UB. Source: UNIUSD on TradingView.
If the entire DeFi market continues to show signs of strength, UNI could be ready to see significantly further up in the coming days and weeks.
Featured image from Unsplash. Charts from TradingView.