Rita Dfouni
- Uniswap printed a breakout candle after surging 23% to an intraday high of $10.75, fueled by heavy whale accumulation.
- Open interest in UNI futures jumped 27% in a single day, while funding rates climbed sharply, reflecting strong bullish conviction.
- A rounded bottom pattern is forming on the daily chart, with a golden cross and key resistance at $12 setting the stage for a potential move to $15.69.
Uniswap’s price has erupted in what traders are calling a “god candle,” with its bullish momentum fueled by significant whale accumulation and renewed market confidence. On July 18, UNI surged by 23% to reach an intraday high of $10.75 before stabilizing slightly at $10.66. This marks a powerful move that places the token more than 120% above its year-to-date low, signaling a clear shift in investor sentiment.
According to on-chain data from Nansen, whale addresses have added 5.89 million UNI to their holdings, representing a 69.28% increase over the past 30 days. The accompanying chart illustrates a clear trend of whale accumulation closely following and reinforcing the recent price rally. The ongoing accumulation appears to have sparked a chain reaction, as retail participation has also intensified in parallel.
This increase in spot activity is mirrored by a notable uptick in Uniswap’s derivatives market. According to CoinGlass, open interest in UNI futures surged 27% in the last 24 hours, bringing the total to $763.68 million. This is a substantial rise from approximately $240 million in May, suggesting that traders are becoming more aggressive and confident in their positioning. The funding rate has also jumped to 0.0233%, up from 0.0049% the previous day, indicating a clear increase in long-biased sentiment as traders pay premiums to maintain bullish exposure.
Newsletter
Get weekly updates on the newest crypto stories, case studies and tips right in your mailbox.
Uniswap signals breakout ahead
The recent rally also coincides with Ethereum’s sharp rebound, which has helped revive interest across the broader DeFi space. Uniswap, being Ethereum’s largest decentralized exchange, has directly benefited from this resurgence. The protocol’s total value locked has now climbed above $5.71 billion for the first time since February, rising roughly 21% since late June.
From a technical perspective, Uniswap has been shaping a rounded bottom formation on the daily chart since January. This classic reversal pattern, often referred to as a saucer bottom, indicates a shift from gradual selling to steady buying. The pattern’s neckline lies at $15.69, while the bottom was formed at $4.59 back in April. With the current price already above $10, the market appears to be in the second half of the pattern, targeting a breakout continuation.
A key resistance level remains at $12, which aligns with the 50% Fibonacci retracement zone. A breakout above this level would increase the probability of a complete pattern move toward the neckline at $15.69, representing a potential upside of nearly 48% from current levels. Adding further support to the bullish case is the anticipated golden cross on the daily chart, where the 50-day simple moving average is set to cross above the 200-day moving average — a classic signal of a long-term trend reversal.
