- Uniswap price is on a journey to retest $25 after the recent downswing.
- On-chain metrics hint at smooth sailing ride apart from the massive resistance at $20.84.
- A daily close below $17.75 will invalidate the bullish thesis.
Uniswap price reverses its downtrend and is on its way to set up higher highs. The bullishness around UNI comes as investors are expecting t UNI price to see a quick run-up as the crypto market also sees a minor upswing.
Uniswap price to continue its ascent
Uniswap price has rallied roughly 11% over the past 24 hours after it sliced through the $18.73 swing low. This upswing is likely to fill the Fair Value Gap (FVG) that extends up to $21.13 and make a run at the $22.36 resistance level.
The buy stop liquidity resting above these highs will be the market makers’ first target. Beyond this area is another FVG, extending from $22.49 to $24.51. So, investors can expect UNI to breeze through this area with ease. Resting above the $24.78 is another set of buy stops that the market makers will target.
This run-up will constitute a 20% surge in Uniswap price.
UNI/USDT 4-hour chart
The technicals are pointing at a bullish outlook for Uniswap price, and on-chain metrics also hint at a similar outlook. Take, for example, the 30-day Market Value to Realized Value (MVRV) model.
This on-chain metric is used to determine the average profit/loss of investors that purchased UNI over the past month. Since this indicator is hovering around -5%, it indicates that investors are at a loss. This area is where market participants accumulate the assets, suggesting it is an excellent place to see UNI price grow.
UNI 365-day MVRV chart
While things are looking up for Uniswap price, there is one hindrance that bulls will face in its upward journey. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows a massive cluster of underwater investors at $20.84. Here, roughly 6,680 addresses purchased nearly 183 million of UNI.
These “Out of the Money” investors are likely to pose a threat to the upswing as they could sell their holdings to breakeven. Therefore, clearing this level will remove the sell-side pressure and trigger an upswing for Uniswap price.
UNI IOMAP chart
A rejection at $20.84 that results in Uniswap price correcting to $18.73 will be questionable and indicate that sellers are running amok. In such a situation, if UNI produces a daily close below $17.76, it will create a lower low and invalidate the bullish thesis.