- Buying pressure on UNI increased while its value pumped.
- The Uniswap Foundation submitted a new proposal to upgrade the governance system.
Uniswap [UNI] surprised investors as its price skyrocketed in just a few hours. In fact, the hike was to such an extent that UNI entered the list of the top 20 cryptos by market cap.
The price hike happened as Uniswap Foundation posted a proposal to upgrade the protocol’s governance system.
The newly submitted proposal aims at upgrading Uniswap’s governance system by rewarding UNI holders who have staked and delegated their tokens.
Uniswap bulls are here
According to CoinMarketCap, UNI’s price surged by more than 65% in the last 24 hours alone. This massive raise in price pushed the token’s market capitalization to over $7.1 billion, making it the 18th largest crypto.
The token’s volume also increased along with its price, acting as a foundation for the price uptrend.
It was interesting to note that a liquidity provider at Uniswap removed 1.2 million UNI of liquidity and deposited 1 million UNI on Binance.
A liquidity provider of $UNI removed 1.2M $UNI($8.7M) of liquidity and deposited 1M $UNI ($7.25M) to #Binance.https://t.co/DoatcRE9YR pic.twitter.com/R4Yc0DjeNl
— Lookonchain (@lookonchain) February 23, 2024
What supported the surge?
To see what allowed UNI to showcase such a performance, AMBCrypto took a look at Santiment’s data. Our analysis revealed that UNI’s exchange outflow spiked sharply, indicating high buying pressure.
This was further established by the fact that Uniswap’s supply on exchanges plummeted while its supply outside of exchanges increased over the last few hours.
Surprisingly, despite the double-digit rise in price, bearish sentiment around the token increased, as evident from the dip in its weighted sentiment.
Source: Santiment
If UNI has to maintain its bull rally, the token’s value must go above a key level. A look at Hyblock Capital’s data revealed that the token might face resistance near $13.1.
UNI’s price might reach new highs if it can turn that resistance into a new support level.
Source: Hyblock Capital
Realistic or not, here’s UNI’s market cap in BTC terms
AMBCrypto then checked Uniswap’s daily chart to see the possibility of the token continuing its rally. The technical indicator MACD displayed a clear bullish advantage in the market.
However, the rest of the indicators looked bearish. The Chaikin Money Flow (CMF) registered a downtick. The Money Flow Index (MFI) was also in the overbought zone, which can exert selling pressure and, in turn, put an end to the bull rally.
Source: TradingView