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- A popular crypto analyst has shared a bullish outlook on Uniswap (UNI) hinged on the digital asset flipping a key resistance.
- USDT dominance has been on a decline suggesting that investors are increasingly seeking Bitcoin and other altcoins.
Popular crypto analyst Rekt Capital has shared his views on Uniswap (UNI) and the next step in its price development. UNI, which fuels the leading decentralized exchange (DEX) Uniswap, is on the verge of a breakout according to the analyst. UNI looks poised to flip a key resistance around $7. This resistance will be established as support, marking a trend reversal for the altcoin.
Posting on his X account, the analyst stated;
Uniswap is on the cusp of a breakout from this macro market structure. Needs to break the top of this pattern and reclaim it as support to enter a new macro uptrend.
This is encouraging for investors who have seen UNI’s price stall slightly above the analyst’s diagonal resistance. At the time of press, UNI is trading at $6.30 after an impressive 20 percent gain in the last 7 days. This makes it by far the best performer of the top 30 cryptocurrencies. Some traders argue that, in the wake of the legal hurdles facing the world’s largest cryptocurrency Binance, traders are seeking decentralized exchanges like Uniswap, driving demand for UNI.
In recent months, U.S. regulators have intensified their scrutiny of centralized exchanges. For example, the SEC has accused a number of exchanges including Kraken, Coinbase, and Binance of offering unregistered securities. The government is attempting to control the cryptocurrencies offered by these exchanges. This has not only influenced the prices of the coins but also affected the operations of the exchanges. This is pushing traders towards decentralized exchanges that operate outside of any jurisdiction. This development paints a very bullish picture for Uniswap and its native token UNI.
USDT Dominance Suggests Crypto Rally
Rekt Capital has also discussed the steadily falling USDT dominance. This suggests that investors are ready to take positions in risk assets. When traders convert Bitcoin and altcoins into USDT, it implies they are cautious and choose to seek a stable asset. Recent data now suggest they are optimistic about cryptocurrencies and are ready to buy select cryptocurrencies.
The analyst noted;
USDT Dominance is declining. Investors are becoming more risk-seeking, eager to move away from stablecoins into BTC and altcoins. Tolerance to risk is growing, and rotational behavior is clear. Lose blue as support and this psychological trend will continue.
Uniswap (UNI) will undoubtedly be one of the favorites for traders. In the long term, investors foresee the token surpassing its all-time high of $44.92 achieved nearly two years ago. Drawing comparisons from pre-halving years in 2019 and 2015, the analyst has also revealed that Bitcoin is a third of the way through its bull cycle. As CNF reported, a majority of analysts foresee Bitcoin reaching $100,000 based on the halving and possible approval of a Bitcoin spot ETF.
