UNI has performed well in this altcoin rebound, with a daily increase of over 7%. Market attention is focused on the return of DeFi funds and the increased activity of Uniswap as a leading decentralized exchange protocol, factors that have collectively driven up token buying.
DeFi fund inflows drive UNI higher.
The article argues that the recent relatively stable performance of Bitcoin and Ethereum has led some funds to shift back to DeFi projects with stronger fundamentals. Uniswap, as one of the leading protocols in the decentralized trading space, has emerged as a strong performer in this recovery.
In addition to improved overall market sentiment, Uniswap's on-chain activity and liquidity performance are also considered supporting factors. With the recovery in demand for decentralized trading, market expectations for the protocol have improved, driving UNI's continued upward trend over the past week.
Price breaks through long-term downtrend line
From a technical perspective, UNI has broken through the downtrend line that had persisted for several months. This level had previously suppressed price rebounds, and now that it has been broken, market expectations for a phase of recovery have clearly increased.
The article also mentions that the trading volume increased significantly during the upward trend, indicating that buyer participation is strengthening. The recovery of short-term moving averages is also seen by the market as a signal of improved price structure.
- Key resistance zone: $3.40 to $3.50
- First support level: around $3.00
- If the resistance zone is broken, the next target is $4.50.
Going forward, pay attention to the performance of trading volume and resistance levels.
The article mentions that the most pressing question is whether UNI can hold its ground in the $3.40 to $3.50 range. If this level is effectively broken and turns into support, the potential for further price recovery may open up.
If short-term profit-taking occurs, the area around the previous breakout trendline, which is around $3.00, may become the first support zone. Whether trading volume can be sustained and whether the DeFi sector's momentum will continue will remain key areas of market observation.
