Uniswap Soars 20% Riding Bitcoin’s $100K Breakout—DeFi Summer Vibes Return

As Bitcoin smashes through the $100K barrier like a Wall Street bonus promise, Uniswap’s UNI token surges 20% in a classic ’altcoin coattail’ move. Liquidity pools churn as traders pivot from BTC profits to DeFi yield plays.

The rally comes amid renewed institutional FOMO—just as SEC Chair grumbles about ’unregulated casino tokens’ at a Morgan Stanley luncheon. Meanwhile, Ethereum gas fees spike 300% as degenerate farmers front-run the action.

Will history rhyme? Last cycle’s ’DeFi blue chips’ now trade 80% below ATHs. But today’s traders only speak one language: green candles and leverage.

UNI’s path forward

Source: UNI/USDT, TradingView

The Q1 dump eased around $5, the same level that stopped the August 2024 plunge. If last August’s recovery was to be repeated, the overhead hurdle at $8 (red zone) was the main immediate target. 

So, bulls could still push for an extra 18-20% gain from the current $6.3 to $7.5-$8.0 level. In fact, the RSI was NEAR the overbought territory, meaning reversal signs were yet to be flashed. 

Besides, the Average True Range (ATR), which tracks volatility, was still low, suggesting that the rally may be far from over. 

On the contrary, the bullish thesis will be invalidated if UNI slips below the 50-EMA (Exponential Moving Average) at $5.8. 

Over 60% Uniswap holders at break-even

It’s worth noting that the overhead hurdle could be sticky due to two key factors. First, only 8% of UNI holders were at a profit at current value, but 61% of holders were at a break-even level.

In a worst-case scenario, investors at break-even could offload their stash to preserve their capital and stall the rally. 

Source: IntoTheBlock 

In fact, Santiment further showed that those who’ve held the token for the past 30 days had an average unrealized profit of 18%.

This could drive short-term holders to book a profit. 

Source: Santiment

Taken together, the overhead of $8 could be a challenge for bulls, especially if BTC slips below $100K.

However, should the risk-on sentiment extend and BTC dominance dips to 60% or lower, UNI could eye $9.5 or the $10 psychological level. 

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion