Uniswap price jumped to its highest point since February

input: Uniswap price jumped to its highest point since February as Decentralized Finance (DeFi) tokens jumped. UNI soared to a high of $8.6858, up by 80% from its lowest level this year.

On-chain data shows that Uniswap price could be at risk despite the DeFi token surging to its highest point since February.

Uniswap price has soared to a high of $8.6858, gaining more than 80% from its lowest level this year. This rally comes as other DeFi tokens like Balancer and Aave also continue to rise sharply.

Uniswap Surges But Exchange Supply Could Spell Trouble

According to Santiment, the supply of UNI tokens on exchanges has surged in the past few days. This metric usually serves as an early indicator of upcoming price trends.

As of June 12, the total amount of UNI on exchanges has risen to 85.63 million, reaching its highest point since February 3. This marks a significant increase from the year-to-date low of 69 million tokens.

Further analysis reveals that whale activity is also a factor to consider. The supply of UNI tokens held by whales has been steadily decreasing despite the recent rebound, suggesting that these large holders might be distributing their tokens.

Currently, the total amount of UNI tokens held by whales stands at 747 million, marking its lowest level in over a year. In October of the previous year, these whales collectively held over 846 million tokens.

Another aspect to keep in mind is the competition that Uniswap faces. While it handled transactions worth over $94 billion in the last 30 days, PancakeSwap has managed to process even greater volume, exceeding $125 billion in the same period.

Moreover, Hyperliquid, a prominent player in the perpetual futures exchange industry, has reported staggering volume figures of $247 billion for the past 30 days and $9 billion for the past 24 hours.

On a positive note for Uniswap, Unichain, its layer-2 network, has become the 6th biggest chain in the decentralized exchange industry. Unichain processed over $9.68 billion in the last 30 days, surpassing popular chains such as Sui, Aptos, Polygon, and Avalanche.

UNI Price Technical Analysis: Bulls Take Charge as Double Top Invalidated

The daily chart shows that the UNI price bounced back and reached a high of $8.6858 on Wednesday. It was its highest point since February this year.

Uniswap price moved above the important resistance level at $7.5410, the highest swing on May 10. Moving above that level invalidated the forming double-top pattern.

UNI price has also jumped above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control for now.

Therefore, the most likely scenario is where Uniswap token retests the support at $7.55 and then resumes the uptrend. If this happens, the next point to watch will be at $11.97, the 50% Fibonacci Retracement level. A drop below the support at $7.54 will invalidate the bullish outlook.