Uniswap [UNI] continues to strengthen its dominance in the decentralized exchange (DEX) market, with its network activity skyrocketing from 36.8% to an impressive 91.3% in 2024. This significant growth has attracted over 45.3 million users, solidifying its position as the leading DEX for user acquisition.

Meanwhile, a whale recently purchased 100,000 UNI for 1.42 million USDC at a price of $14.24, highlighting strong investor confidence. As of the time of writing, the trading price of UNI is $13.35, having risen about 1.31% in the last 24 hours, with key price levels potentially determining its next direction.

Attention needs to be paid to the critical levels for a breakout.

The price chart of UNI highlights the possibility of a substantial breakout, as a symmetrical triangle pattern has formed. This structure typically signals significant movements, and the retest of the $12 resistance level increases the likelihood of a Call.

Breaking through this level could push UNI up to $20 or higher, providing significant upside for traders. However, the recent sell-off pressure on the chart underscores the importance of sustained Buy momentum.

What aspects of network activity do the Indicators reveal?

On-chain Indicators show an optimistic outlook for UNI. The net network growth rate has increased by 0.22%, indicating a significant influx of new users. Additionally, whale activity remains stable, with a concentration increase of 0.07%.

However, the 'in-the-money' indicator has dropped by -1.41%, suggesting some holders are taking profits. Large transactions decreased by -5.59%, indicating short-term prudence. These mixed signals highlight the importance of monitoring whale movements and broader market sentiment to determine UNI trends.

UNI Exchange Reserve Analysis

Exchange reserves have slightly increased by 0.21%, reaching a total of 70.22 million tokens. Although this may suggest lower selling pressure, the low growth rate indicates that most holders have been maintaining their positions.

This seems consistent with the overall market pullback, although a significant increase in reserves could indicate bearish intent.

Is the momentum strong or is it losing steam?

technical indicatorsFurther reveals the status of Uniswap as of the time of writing. The Average Directional Index (ADX) is 26.77, indicating a moderate trend strength. At the same time, the 9-day moving average is below the 21-day moving average, indicating a recent Put.

However, the symmetrical triangle highlights that a bullish crossover may soon ignite new buying interest.

Bull/Bear Ratio - Does the market lean towards bullish?

As of the time of writing, UNI's Bull/Bear Ratio is 1.073, with 51.76% of the buying volume favoring the bulls. This growing bullish sentiment suggests that traders are preparing for a potential breakout. In addition, the shift to Bull positions aligns with broader price increase expectations.

However, maintaining this sentiment will depend on whether UNI can break through key resistance levels and sustain momentum in the upcoming trading days.

Is Uniswap ready for a breakout?

Supported by bullish on-chain signals and technical patterns, UNI's chart shows strong signs of breakout potential.

If UNI can decisively break through $14, it is likely to rebound to $20, solidifying its strength in the DeFi market. Therefore, UNI may be poised for a significant rise, especially if key indicators and market sentiment are favorable.

In simple terms, the price of UNI has formed a Call triangle, indicating a potential significant breakthrough, while bullish on-chain Indicators and increasing long-term sentiment suggest a strong upward trend.