Uniswap Price Soars 19%, Breaking $10 Amid Legal Battle with SEC

Uniswap (UNI), the decentralized exchange’s native cryptocurrency, has seen a remarkable price surge, jumping over 19% and breaking past the $10 mark. 

The Uniswap price rally can be attributed to several factors, primarily the exchange’s firm stance in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC has sent Uniswap a Wells notice, signaling potential enforcement action. However, Uniswap has responded robustly, labeling the SEC’s case as weak and vowing to challenge the notice.

This legal tussle has bolstered investor confidence, contributing to the 19.45% price increase. As of press time, Uniswap was trading at $10.93, with its market capitalization soaring to $6.5 billion. The trading volume for Uniswap has also increased, rising by over 40% to exceed $510 million.

UNI/USD 1-day price chart (Source: CoinMarketCap)

Whale Activity and Market Sentiment

Another factor driving the Uniswap price surge is the notable activity among cryptocurrency whales. Data shows substantial withdrawals from exchanges, particularly following news related to the spot Ethereum ETF. These movements suggest that large investors are accumulating Uniswap, thereby reducing its availability on exchanges and pushing the price higher.

A recent transaction highlighted by Lookonchain showed a withdrawal of 213,166 UNI, worth approximately $1.96 million, from Binance. Such whale activity indicates strong buying interest and a positive sentiment towards Uniswap’s prospects.

Another fresh wallet withdrew 213,166 UNI($1.96M) from #Binance just now.https://t.co/u15CE864hm pic.twitter.com/kyOBv0TB5G

— Lookonchain (@lookonchain) May 24, 2024

Technical Indicators and Breakout

Uniswap’s breakout from a 35-day consolidation phase indicates a potential for further gains. Technical indicators support this bullish outlook. The Bollinger Bands, for example, show the price touching the upper band, indicating strong upward momentum. Although this often suggests overbought conditions, it also highlights increased volatility and potential for continued price movement.

The Donchian Channels confirm the breakout, with the price surpassing the upper limit, suggesting a new high. The Simple Moving Average (SMA) further reinforces this trend, with the price above the 20-day SMA, indicating sustained bullish sentiment.

UNI/USD 1-day price chart (Source: TradingView)

The Moving Average Convergence Divergence (MACD) shows the MACD line above the signal line, supported by positive histogram bars, indicating building bullish momentum. Moreover, the Coppock Curve, currently at a high value of 63.151, also supports this trend, showing strong upward momentum.

Market Liquidations and Open Interest

The recent price surge in Uniswap has led to substantial market liquidations. Over the past 24 hours, more than $1.2 million in liquidations have occurred, with $820,000 being short positions. This wave of liquidations underscores the intense buying pressure and the impact of the price rally on traders holding short positions.

Additionally, the open interest in Uniswap futures has increased by 38% to $120 million, indicating heightened trading activity and a strong bullish sentiment. This rise in open interest suggests that more traders are entering the market, betting on further price increases.

On-chain data analytics firm Santiment’s Age Consumed index has also supported the bullish outlook. Spikes in this index, which indicate the movement of dormant tokens, often precede price rallies.