$UNI on the Brink of a Breakout: Is Uniswap Ready to Dominate DeFi Again?

5 days ago 21

$UNI is showing signs of reversal, currently testing the $7 resistance level after a prolonged downtrend.
Analysts target $14 next, citing bullish divergence and improved sentiment as key drivers.
Uniswap v4 and Coinbase integration are boosting confidence, with upgrades enhancing security and efficiency across its DeFi ecosystem.

Uniswap ($UNI) is a decentralized exchange (DEX) on the Ethereum blockchain that facilitates peer-to-peer trading of cryptocurrencies using automated market makers (AMM), with $UNI being its governance token.

Price Movements

Currently priced at $6.76 with a $4.27 billion market cap, $UNI has been anything but stable over the past year. The token hit a low of $5.4 in August, only to soar to $18.7 by December amid growing market enthusiasm. However, the price has since been in a steady decline, forming lower lows. That said, in the past week, there have been signs of a possible reversal, with price action indicating a potential shift in trend.

Credit: CoinGecko

Price Predictions

$UNI is now testing resistance at the $7 level. Looking ahead, analysts believe the token is in an oversold state, with a bullish divergence forming, suggesting that the price could soon break past this resistance. If $UNI manages to clear the $7 mark, $14 becomes a realistic target, with additional upside potential if the token gains sustained momentum.

Market Sentiment and Developments

Market sentiment for Uniswap is turning positive as Uniswap v4 gains momentum. This can be seen with Coinbase integrating Uniswap v4 hooks and launching Verified Pools, which require liquidity providers to verify their identities. This addition enhances security and transparency, while transactions on Coinbase’s Base layer 2 network become faster and more cost-efficient. These developments reinforce confidence in Uniswap’s growing role within the DeFi ecosystem.