UNI Soars 20% as DeFi TVL, Open Interest, and Volume Surge
Uniswap Surges Past $10: A New Era for DeFi and Derivatives
Uniswap’s Remarkable Price Movement
Uniswap (UNI) has experienced a significant price increase, surpassing the $10 mark for the first time since February, currently trading at approximately $10.62. This notable rise, nearly 20% in a single day, highlights the growing enthusiasm among investors for decentralized finance (DeFi) solutions, particularly following the recent approval of three cryptocurrency regulation bills by the U.S. House of Representatives.
Strong Momentum in DeFi and Derivatives Markets
The upward trend in Uniswap’s price is supported by a robust interest in altcoins, with Ethereum (ETH) climbing above $3,600 and Ripple (XRP) achieving a new all-time high of $3.66. The bullish technical indicators for UNI suggest a solid support level at $10.00, bolstered by the expanding DeFi ecosystem surrounding Uniswap.
As reported by DefiLlama, Uniswap’s Total Value Locked (TVL)—a measure of the total assets secured in smart contracts across its platform—has reached $5.75 billion. After a decline in TVL during the first quarter, it stabilized at $3.28 billion in April and has since shown consistent growth. This increase is a positive signal for UNI, indicating heightened investor confidence and potentially reducing selling pressure due to a lower circulating supply.
Derivatives Market Activity
The interest in UNI is also reflected in the derivatives market, where Open Interest (OI) has surged nearly 23% to $738 million in the last 24 hours, according to CoinGlass. Additionally, trading volume has skyrocketed by 75%, reaching $2.9 billion, suggesting that traders are increasingly optimistic about future price movements. A wave of liquidations has predominantly affected short position holders, with approximately $4.4 million liquidated compared to $1.34 million in long positions. The long-to-short ratio on Binance has also risen, averaging 1.2660, indicating a growing risk appetite among traders.
Technical Analysis: Can Uniswap Maintain Its Momentum?
Uniswap is currently positioned within a bullish technical framework, characterized by a Golden Cross pattern and a buy signal from the Moving Average Convergence Divergence (MACD) indicator, which has been active since July 8. The bullish sentiment was reinforced when the MACD line crossed above the signal line, with green histogram bars indicating strong momentum.
The earlier confirmed Golden Cross, where the 50-day Exponential Moving Average (EMA) crossed above the 100-day EMA, supports the optimistic outlook. A second Golden Cross may occur if the 50-day EMA closes above the 200-day EMA.
However, the Relative Strength Index (RSI) is currently at an overbought level of 74, suggesting that traders should exercise caution. While a rising RSI indicates bullish momentum, it also raises the risk of sudden price corrections. Therefore, it is crucial for UNI to maintain support above the $10.00 level; otherwise, profit-taking could lead to declines toward lower support levels, including the 50-day and 200-day EMA confluence around $7.68 and the 100-day EMA at $7.31.
Conclusion
Uniswap’s recent price surge reflects a broader trend in the DeFi space, driven by positive regulatory developments and increasing investor interest. As the market evolves, traders should remain vigilant, monitoring technical indicators and market sentiment to navigate potential volatility.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results.
