Uniswap Price News: UNI Needs to Stay Above $4 to Keep Rallying

Uniswap (UNI) rose by 11% in the past 24 hours as most cryptocurrencies experienced a strong boost after President Trump’s State of the Union speech.

The token hit the $4 mark, and selling pressure quickly started to increase as bearish sentiment is still strong.

Trading volumes have jumped by 153% in the past day, rising to $460 million and accounting for nearly 20% of the asset’s circulating market cap.

On-chain metrics show that trading activity within the Uniswap decentralized exchange (DEX) has been rising lately.

Protocol Fees and DEX Transaction Volumes Spiked This Month

During the week ended on February 8, protocol fees spiked to $20 million while more than 23.2 million transactions were processed as the price of crypto assets plummeted.

These were the second-highest weekly volumes processed by the protocol in the past 12 months, reflecting the chaotic state of the market at a point when bearish sentiment reached extreme levels.

Uniswap On-Chain Metrics – Source: Artemis

Nonetheless, activity levels have been steadily dropping since then, with weekly fees ending last week at just $7 million while DEX transactions dropped to 13.3 million, meaning a 43% retreat.

This latest spike in the price of UNI seems to be in line with the overall recovery that the market experienced yesterday, and does not seem to be associated with an improvement in the project’s fundamentals.

UNI has booked a 31% loss since the year started, in line with the losses that Ethereum (ETH) has experienced during this same period.

Uniswap (UNI) Could Rise to $5 If This Rally Keeps Going

Looking at the daily chart, selling pressure seems to have increased right after the token hit the $4 mark.

A spike in trading volumes confirms this, increasing the odds of a retreat to the $3.25 support area unless there’s a meaningful change in sentiment.

If the $4 level holds, there’s still a chance that UNI might continue to rally toward $5, meaning a 25% upside potential from where it is trading now.

The Relative Strength Index (RSI) currently sits at 56, right above the 14-day moving average. This is bullish as it indicates that positive momentum is accelerating.

Buyers would have to push UNI past the $5 barrier in the next few days to keep the rally going, or bears will likely take advantage of this relief rally to dump the token at a much better price compared to a week ago.

The next target, if this move is part of a normal mean reversion, would be the 200-day exponential moving average (EMA), which currently sits at around $7. Whether the price keeps going after hitting that mark or retreats will determine if this rally will mark the end of this bearish cycle or not.

Heading to the hourly chart, we got three consecutive “buy” signals for UNI that preceded this jump. Measured from the first signal, the move yielded a 19.4% gain.

A sell signal has not yet shown up, even though the price action has clearly hit a temporary ceiling. If we get another buy signal at this level, the odds would favor a move toward $5.

In that case, a long position could be taken with a target set at that level and a stop price at around $3.85. This trade offers an attractive 5.6x risk-reward ratio.