The popular altcoin, Uniswap’s mainnet asset UNI coin, has caught a robust upward trend since the beginning of May, challenging the $10 threshold. The UNI coin kicked off the week with a surge exceeding 20%, eyeing the double-digit zone again, buoyed by a stable increase in volume and on-chain data. The fund growth recorded in the first quarter of the year, coupled with the V4 upgrade and Unichain expansion, fosters a long-term bullish scenario for the altcoin. On the technical front, the contraction of Bollinger bands and the impending positive shift of the weekly MACD suggest a price movement reminiscent of the former rally’s $20 peak.
Second Parabolic Rally Signal in UNI Coin’s Price
Following the first parabolic rise in UNI coin’s price chart, a consolidation phase gave way to a new “cup” formation. Experts concur that the combination of band narrowing and increasing buy orders could propel the price above $12 soon. Notably, the persistent demand for liquidity pools helps maintain limited selling pressure despite short-term price fluctuations. The previous neckline at $19.5 emerges as an interim target, and the gradual climb in spot volume could trigger upward volatility.
The recent accumulation of UNI coins in large investor wallets over the past two weeks bolsters the bullish scenario. On-chain data reveals that network activity has increased proportionally with the price, similar to the first wave rally.
With the Weekly Relative Strength Index (RSI) not yet entering the overbought zone, there is no significant momentum barrier for a potential breakout. Analysts believe that if the psychological $10 barrier is decisively surpassed, $15 could be swiftly tested, and $20 might enter the discussion by the quarter’s end.
V4 Update and Unichain’s Growth Plan Bolster the Rise
Uniswap Labs’ V4 version aims to provide a competitive edge to the ecosystem with customizable liquidity pools and reduced transaction fees. Developer documentation reveals that V4’s code optimizations, which improve energy efficiency, will lower operational costs. Consequently, demand for UNI coins is expected to rise, and the protocol’s total value locked (TVL) metric is moving upwards.
The Unichain initiative targets transforming a multi-blockchain structure into a single-click accessible ecosystem. This change will simplify network-to-network transfers for investors, minimizing liquidity disruptions. Experts argue that Unichain’s implementation will lead to a multiplier effect in transaction volume, supporting the price of the altcoin UNI. In the long run, expanding governance votes and fee-sharing mechanisms could strengthen UNI as both a reserve asset and a governance tool.
