Uniswap [UNI] Primed for a Bullish Run After Defending Critical Support Level

Uniswap [UNI] has demonstrated significant strength after successfully defending the $8.75 support level and subsequently posted an impressive 8% gain.

Uniswap (UNI) price soared by 8% after successfully defending a crucial support level, indicating a potential bullish breakout.

The altcoin encountered resistance at $9.73, with a liquidation pool of 430K UNI at this price point. This may drive UNI prices higher in favor of long positions.

Uniswap price analysis

Uniswap price broke out from an ascending triangle pattern, a technical formation that usually precedes a bullish trend.

Afterward, UNI encountered several tests of the $8.75 support level, which highlighted the presence of a demand zone. This support level held strong throughout the last week.

Uniswap encountered resistance at $9.73. However, a successful breakout from this level could lead to further gains.

According to AMBCrypto's analysis of on-chain data, there was a 520% surge in active addresses on the Uniswap network within 24 hours. This indicates a substantial increase in user activity.

Furthermore, there was a 143% increase in large transactions, suggesting greater whale interest in UNI.

According to IntoTheBlock, this aligns with the increasing active addresses, suggesting a growing institutional interest in the altcoin.

Usually, increased participation in the network precedes sustained price movements. This is because higher trading activity leads to increased price discovery.

According to Coinglass's liquidation heat map data, there were significant positions around the $9.73 price level, with roughly 430K UNI in liquidations.

This liquidation pool may have attracted prices to push them higher in favor of those holding long positions, increasing the possibility of a bullish breakout for Uniswap.

Both Uniswap technical and on-chain metrics signaled a bullish trend. However, the $9.73 resistance level remained critical.

If UNI prices managed to cross above this level, it could trigger a cascade of liquidations, potentially fueling further upside momentum.