Uniswap price forecast – UNI traders, when should you take profits?

• Expectations are high for Uniswap for this cycle
• Network metrics have been well below their 2021 highs, suggesting further growth is possible

Uniswap (UNI), at press time, seemed to be showing strong conviction. It has gained 97% since November 20, while also breaking several key resistance levels along the way. Its open interest climbed 12% in 24 hours as well – An indication of bullish sentiment.

Technical and chain metrics revealed that Uniswap is going up strongly now. And, more benefits can be expected in the coming months. This, despite the fact that UNI is still 61% below its all-time high of $44.9 as of May 2021.

Major lows were reconfirmed as support

Uniswap bulls managed to pass the $17.05 level that marked a March 2024 high. Along the way, the key lows from that decline, set at $12.93 and #14.64, were reconfirmed as support

The OBV has been rising significantly in addition to the price, to reflect high demand. The RSI was in overbought territory at press time, but had not yet made a bearish divergence. A consolidation in the $16-$17 range before the next leg could materialize in the coming weeks.

The $15.45-$15.95 zone is also likely to be a strong demand area if UNI price sees a dip to the south.

New addresses have yet to start rising

In the previous round, when several small cap coins were launched on the Ethereum network many new addresses were created trying to Uniswap, the largest decentralized exchange (DEX), to trade these tokens. A similar scene is playing out now, and has been, on the Solana (SOL) network with its memecoin frenzy.

An increase in new addresses and increased participation leads to an increase in fees, especially in the later stages of the bull run. Compared to 2021 to 2024, the new addresses count and the network fees were lower than those high levels.

While these metrics suggested that further long-term growth was possible, other metrics suggested that a short-term pullback was likely. Uniswap saw a release rate in October and early November, marked by a falling average coin age.

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Read the Uniswap (UNI) Price Forecast 2024-25

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Meanwhile, the MVRV ratio soared higher and hit all-time highs in March to signal an increase in profitability. This indicated that the token may have been overvalued. Therefore, traders and investors should be willing to take profits and wait for a dip to buy more UNI.