Uniswap experienced a notable uptick on Wednesday, resulting in a surge to $3.75. It returned above $3.50 for the first time since May 22.
However, the upward momentum was short-lived as the asset quickly retraced after peaking. It shed almost all its gains and trades slightly above its opening price. Trading action over the last 24 hours suggests an increase in selling pressure.
Nonetheless, it is receiving notable attention as trading volume rose by over 100% in the last 24 hours. Looking back, Wednesday’s surge is not an isolated event. The altcoin has been on the rise since last Thursday.
The upward momentum increased due to a recent announcement from Standard Chartered. The firm made a series of predictions concerning UNI. One such prediction is that its value will reach $100 by 2030. Expanding the speculation, the institution stated that the asset will reach a high of $6.50 in 2026 and $20 by 2027. UNI is also projected to peak at $40 in 2028 and reach $65 the next year.
Fueling this massive increase is the sharp expansion in DEX volume. The firm noted that Uniswap is the largest decentralized exchange (DEX) and stands to benefit from the tokenization of assets moving into DeFi. It projected volume to rise from $340 billion to $4 trillion by end-2028.
In reaction to this announcement, investors became more optimistic about the asset, staging massive rallies as they expect prices to go as predicted. There is also a growing expectation that Standard Chartered will look to profit from the increases by buying UNI.
Will Uniswap Surge Higher?
The likelihood of the asset surging higher is slim. Wednesday’s candle shows a sharp increase in profit-taking. The selling pressure seen at the time of writing is comparable to that seen last week.
A closer look at the 1-day shows $3.75 is a critical resistance. This is not the first time UNI has buckled below this key level. After dropping below it in March, it tried reclaiming it but was rejected, trading below it until May.
The same trend repeated last month; the altcoin met stiff resistance at the mark. Based on previous price movements, UNI’s recent uptrend may have ended following its recent failure to flip the key barrier.
The recent wave of selling suggests that investors are moving past the news from Standard Chartered. With the thrill surrounding the fundamentals dying, the fuel for the upward momentum died too.
In a nutshell, price action and fundamentals indicate that the uptrend is over and UNI will not surge further if current conditions remain the same.
Interestingly, the 1-day chart reveals that the bulls may stage buybacks at the 200 moving average. Over the last few weeks, the metric acted as a barrier. When prices slipped below it, it was resistance, and when it broke above it, it served as support.
Uniswap is currently trading above the indicator. It stands as the last line of defense for the bulls. If they lose it, prices will retrace below $3. Conversely, rebounding above it will guarantee another attempt at $3.75.
Furthermore, in the event UNI loses the 200 MA, the bulls must defend $3. Previous price movement suggests that failure may lead to a drop below $2.50.
