Uniswap [UNI]'s dominance in the decentralized exchange (DEX) market continues to grow, and its network activity soared from 36.8% to an impressive 91.3% in 2024. This significant increase attracted more than 45.3 million users, solidifying its position as a leading DEX user acquisition.

Meanwhile, a whale recently purchased 100,000 UNI for $1.42 million in USDC for $14.24 million, underscoring the strong confidence of investors. At press time, UNI was trading at $13.35, up about 1.31% in the past 24 hours, and the key price level may determine its next course.

Key levels of breakthroughs need to be watched

UNI's price chart highlights the possibility of a major breakout as a symmetrical triangle pattern forms. This structure usually indicates a major move, while a retest of the $12 resistance level increases the possibility of bullishness.

Breaking through this level could push UNI up to $20 or higher, providing traders with huge upside. However, recent selling pressure on the chart highlights the importance of continued buying momentum.

What aspects of network activity do the metrics reveal?

On-chain metrics show a positive outlook for UNI. Net network growth increased by 0.22%, indicating a massive influx of new users. Furthermore, whale activity remained stable, and concentration increased by 0.07%.

However, the “in-price” indicator fell by -1.41%, indicating that some holders are taking back profits. Large transactions fell -5.59%, indicating short-term prudence. These mixed signals highlight the importance of monitoring whale movements and broader market sentiment to determine UNI's movements.

UNI Exchange Reserve Analysis

Exchange reserves rose slightly by 0.21%, reaching a total of 70.22 million units. While this may suggest less selling pressure, the low growth rate suggests that most holders have been maintaining their positions.

This appears to be in line with the overall market retracement, although a sharp increase in reserves may indicate bearish intentions.

Strong momentum or loss of momentum?

Technical indicatorsIt further revealed the state of Uniswap as of press time. The Average Directional Index (ADX) is 26.77, indicating moderate trend strength. Meanwhile, the 9-day moving average is below the 21-day moving average, indicating recent bearishness.

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

Long/short ratio — does the market tend to be bullish?

At press time, UNI had a long/short ratio of 1.073, with 51.76% of the buying volume favoring the bulls. This growing bullish sentiment indicates that traders are preparing for a potential breakout. Furthermore, the shift to long positions is in line with broader expectations of rising prices.

Maintaining this sentiment, however, will depend on whether UNI can break through key resistance levels and maintain momentum in future trading days.

Is Uniswap ready for a breakthrough?

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

If UNI can make a decisive break above $14, it is likely to rally to $20, solidifying its strength in the DeFi market. As a result, UNI may be ready for a sharp rise, especially if key indicators and market sentiment are favorable.

Simply put, the price of UNI forms a bullish triangle, indicating the possibility of a major breakout, and bullish on-chain metrics and growing long-term sentiment indicate a strong upward trend