Uniswap [UNI] pumped 26% as Bitcoin blasted above $100K

Uniswap [UNI] price showed a 26% surge on the 8th of May as Bitcoin blasted above $100K for the first time in three months.

What happened: The DeFi token gained an extra 3% by 3:05 p.m. (07:05 GMT) on the 9th of May, before the U.S. market opened. This brought the overall recovery to 35% in the past 48 hours.

But can the rally extend into the weekend with a key obstacle at the $7.5-$8 zone?

UNI's path forward

The Q1 dump eased around $5, the same level that stopped the August 2024 plunge. If last August’s recovery is to be repeated, the overhead hurdle at $8 was the main immediate target.

So, bulls could still push for an extra 18-20% gain from the current $6.3 to $7.5-$8.0 level. In fact, the RSI was near the overbought territory, meaning reversal signs were yet to be flashed.

Besides, the Average True Range (ATR), which tracks volatility, was still low, suggesting that the rally may be far from over.

On the contrary, the bullish thesis will be invalidated if UNI slips below the 50-EMA (Exponential Moving Average) at $5.8.

Over 60% Uniswap holders at break-even

It's worth noting that the overhead hurdle could be sticky due to two key factors. First, only 8% of UNI holders were at a profit at current value, but 61% of holders were at a break-even level.

In a worst-case scenario, investors at break-even could offload their stash to preserve their capital and stall the rally.

At press time, UNI was trading at $6.3, down 0.10% in the past 24 hours.

On the other hand, BTC was hovering around the $99K level, indicating a potential downsurge to the $100K mark.

This aligns with the technical analysis provided earlier, which suggests that a move toward $105K is highly probable in the near term.

Moreover, BTC dominance slipped to 60% on Wednesday, paving the way for altcoins to rally further.

This is in line with the analysis that predicts a continuation of the altcoin season throughout May.

As such, an extended risk-on sentiment could push UNI to $9.5 or even the $10 psychological handle.