Uniswap Price News: UNI Eyes $8 as Trading Volumes Rise by 40%

Uniswap (UNI) has gone up by 14.6% in the past 24 hours and currently sits at $7 per token as trading volumes have exploded after the Iran-Israel cease-fire agreement.

Geopolitical tensions have been the key driver for the crypto market lately as turmoil in the Middle East has spooked investors.

Most cryptos plummeted during the weekend but rebounded yesterday after President Donald Trump announced a cease-fire between the two countries hours after Iran retaliated against the U.S. via an airstrike on a Dubai-based military installation.

Pectra and Unichain Launch Result in Higher TX Volumes

Apart from the market’s overall recovery, Uniswap’s DEX trading volumes have also been improving in the past three weeks or so, jumping from $18 billion in late May to $21 billion as of last week.

Uniswap Weekly Trading Volumes – Source: DeFi Llama

Ethereum’s Pectra upgrade benefits DEXs as it allows them to offer lower trading fees via layer-2 scaling platforms like Arbitrum amid an increase in the number of blobs per ETH block.

This technical improvement to the blockchain’s architecture would make it cheaper to transfer Ethereum-based assets and could result in higher transaction volumes in the near term.

Uniswap launched in February this year its own L2 called Unichain. This sidechain offers instant transaction settlement (1 second block times) and has already processed 110 million transactions successfully and without downtimes.

A total of 6.3 million wallets have already interacted with this L2. Unichain can be used to deploy and transfer ERC-20 tokens at a fraction of the cost of doing so directly through the Ethereum Virtual Machine (EVM).

UNI Has a Clear Runway to Get to $8

In the past 30 days, UNI has booked gains of 16%, partially aided by today’s strong uptick. Notably, it is one of the only cryptocurrencies that has delivered positive results during this period and has thrived despite the latest wave of negative sentiment.

UNI/USD Daily Chart (Coinbase) – Source: TradingView

Looking at the daily chart, we can see a strong area of support at $6 where buyers have shown up to scoop up UNI multiple times already.

Sunday’s and Monday’s rebound coincided with a touch of this key support level. Right beneath it, we can see that the token is also in high demand when it touches the high 5s.

Its 9-day and 21-day exponential moving averages (EMAs) are currently sitting below the 200-day EMA. This latter indicator seems to be the key support to watch for market participants in this time frame and coincides with the $8 psychological support level.

This could be the near-term target for UNI. A rejection of a move above this level could confirm that the token has entered a phase of consolidation with strong rebounds expected to occur near the $6 and $8 targets.

This would be a positive scenario for scalpers and even swing traders who will have clearly defined entries and exits for their long and short positions.

UNI/USD Hourly Chart (Coinbase) – Source: TradingView

Heading to the hourly chart, we can see that the 9-period and 21-period EMA have confirmed a bullish outlook upon crossing above their 200-period peer.

A double-bottom pattern confirmed this bullish move as the price made two consecutive higher lows. Nothing seems to stand in the way for UNI to reach the $8 target except for a bearish macroeconomic or geopolitical event.