Uniswap’s UNI token has faced some intense selling pressure throughout the past few weeks, with it being struck particularly hard by the recent downturn seen across the aggregated DeFi sector.
However, this weakness is beginning to transform into strength as buyers have sent the crypto rocketing nearly 100% from its recent lows.
The intensity of this recent uptrend indicates that bulls might be on the cusp of sparking a parabolic uptrend, with many of the so-called “blue-chip” DeFi assets all screaming higher as of late.
There’s one outstanding catalyst that could also bolster Uniswap’s UNI this week. The UNI reward LP pools that have been running for the past 57 days are about to run dry.
The selling pressure resulting from these LP incentives have been largely thought to have placed some immense downwards pressure on the cryptocurrency’s price.
Once they end, there will be less daily selling pressure placed on the token, giving it room to rally.
Uniswap’s UNI Rallies Alongside Aggregated DeFi Market
At the time of writing, Uniswap’s UNI token is trading up over 20% at its current price of $3.58.
This marks the highest price seen by the cryptocurrency in weeks and is nearly 100% above its sub-$2.00 lows set last week.
This uptrend’s intensity has come about in tandem with those seen by other benchmark DeFi assets, including Yearn.finance’s YFI token, which is also trading up nearly 20% at the time of writing.
The ongoing DeFi explosion has come about in the absence of any noticeable strength from Ethereum, which remains a backbone for the sector.
If ETH can rally higher and break past its $500 resistance, assets like Uniswap’s UNI may soon be able to climb in tandem.
Analyst: UNI Likely to Target $4.00 as Bulls Take Control
One analyst explained in a recent tweet that he is now watching for UNI’s price to rocket towards $4.00 in the near-term, noting that its chart is looking “quite attractive.”
“UNI – Beginning to look quite attractive for a long soon. Long the triangle break szn.”
Image Courtesy of UB. Source: UNIUSD on TradingView.
If the entire DeFi market continues flashing signs of strength, then UNI could be poised to see significantly further upside in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.