Uniswap: Can UNI got a bull time in the short term
Uni has recently had price changes. Let's analyze if there could be a rally in the near future?
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Uniswap for the last 7 days
Decentralized exchange Uniswap has seen increased demand and utility over the past 7 days. A logical outcome is when the market moves from a low-volume phase in early October to a high-volume phase at the end of the month. This performance can provide an idea of what investors should expect going forward.
In theory, Uniswap's higher utility means higher demand for its native UNI token. Also, last week we saw an increase in the number of daily active addresses as the market started to heat up. This growth started October 23-24. Overall network growth also picked up around the same time this week.
Higher active addresses represent an increase in network utility as crypto speculators take over after a previous period of relative inactivity. Uniswap's network transaction volume increased between October 23 and 25 and has since slowed.
The drop in trading volume may not reflect the drop in demand. However, he confirmed most of the demand was concentrated at the beginning of last week. While these numbers confirm the increase in network activity and growth, they are not the only reason why UNI is needed.
The sudden turn to bullish market sentiment could also boost demand for the UNI token. This may explain why it continues to increase even as network transactions slow down.
In the past 7 days, UNI has recovered more than 20%. It hit a two-month high of $7.36 before falling back to $6.95 on October 30. Its latest price action broke a key resistance at the established price levels mentioned. This resistance is located at the 0.382 Fibonacci retracement level.
UNI for the next 7 days
The previous two attempts at the same resistance showed less momentum than the previous pullback. This shows that the price is gaining relative strength in favor of the bulls. This has been happening since the RSI crossed the 50 level.
We could see UNI rise again in the next few days. This is because it still has some ground to cover before approaching the overbought zone. Whether the increased relative strength will allow the bulls to overcome any downside and resume the uptrend remains to be seen.
Investors should be interested to see if increased selling pressure has a positive impact on UNI. Perhaps organic demand for UNI will absorb the selling pressure in the market. If not, we could see UNI give way to the current resistance range.
Oct 31, 2022
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