Uniswap (UNI/USD) trades with weekly gains of 8%. Only a handful of cryptocurrencies have posted gains in the past week. A drop below the key support of $5.6 after the FTX collapse was quickly followed by a sharp recovery. That helped bulls to recapture the key level, with UNI trading at $5.8 as of press time.
The gains in Uniswap coincide with rising trading volumes post-FTX saga. On Monday, Ethereum transactions on the decentralised crypto exchange hit $1.21 billion. The volume represented an increase of over 80% in a day. The rising volumes indicated that traders were deploying their digital assets on alternative DEX platforms after the FTX collapse. Attraction to DEX platforms like Uniswap could support the native tokens, at least in the short term.
Meanwhile, new users on Uniswap’s Web App reached the highest in the year. A total of 55,550 Daily New Transacting Wallets were reported on November 15. Uniswap Labs attributed the milestone to the growing demand for self-custody wallets. Apparently, the growth in self-custody wallets has been attributed to a mass exodus of investors from centralised exchanges.
Uniswap retreating to the support after a strong recovery post-FTX dip
Uniswap found support at $4.8 after the accelerated selloff a week ago. The monthly high was set at $7.7 in previously building bullish momentum.
The key technical level for UNI is $5.6. The cryptocurrency is correcting to retest the support zone after the recent breakout. The MACD indicator shows that momentum is still weak. However, momentum is improving, although bears are in control.
Should you buy UNI now?
UNI price recovery above $5.6 makes it attractive and likely to find higher levels. We should watch for bullish signals at the support as the token retests the level. The next targets for the cryptocurrency are $7 and $7.8.
On the flip side, if bulls fail at the $5.6 level, a continuation of the bear momentum could force UNI lower. The next levels to watch for the cryptocurrency will be $4.8 and $4.1.