Key OnChain Metrics to Monitor Uniswaps Soaring Price Worth Paying Attention to

Bijiewang reported:
The bullish momentum of UNI is driven by the increase in trading volume, with the RSI approaching the overbought level of 68.67.
The surge in open interest contracts, but the decrease in forex reserves, indicates potential liquidity concerns in the future.
Uniswap
With strong price trends and increased trading activity, market sentiment is high. At the time of writing, the token’s trading price is $7.62, up 6.52%.
UNI has shown resilience above key price levels, but whether it can maintain this momentum or be pushed back by market forces remains to be seen.
Strong price trends drive market optimism
UNI has experienced significant growth, with a 24-hour trading volume surging by 58.59% to $168.51 million. The increase in trading volume highlights the interest of traders hoping to take advantage of the upward trend of UNI.
Technical indicators further strengthen the bullish weight. The relative strength index (RSI) is currently at 68.67, indicating that UNI is approaching the overbought zone, although it has not yet reached the key level of 70.
In addition, the Bollinger Bands (BB) show that Uniswap’s trading price is approaching the upper limit of $7.62, which usually indicates increased volatility. Therefore, traders should closely monitor these levels as they may indicate upcoming price consolidation or breakout.
UNI on-chain indicators: Do they support the bullish scenario?
According to data from CryptoQuant, in addition to price movements, on-chain indicators further strengthen UNI’s strong market performance. Active addresses have increased by 1.35%, totaling 65.04K in the past 24 hours.
This growth indicates that more participants are using the Uniswap protocol, which is a key indicator of network health.
In addition, the number of transactions has increased by 1.6%, processing a total of 1.691 million transactions during the same period. Therefore, the increase in active addresses and transactions indicates a healthy and active user base that can support continued growth.
UNI forex reserves: A warning signal?
However, the situation with forex reserves is slightly different. In the past 24 hours, forex reserves have decreased by 0.17% to $57.136 billion, and the easing of selling pressure may indicate potential supply shocks.
While this is usually associated with bullish sentiment, traders should proceed with caution. Lower reserves may limit liquidity, making it more difficult for Uniswap to sustain its current rebound if demand suddenly surges.
Open interest contracts: Boosting trader confidence
In addition, UNI’s open interest contracts have surged by 7.11% to $91.96 million.
Is your investment portfolio green? Check it out.
UNI Profit Calculator
The increase in open interest contracts indicates that more traders are entering the market, betting on further price increases. Therefore, this strengthens the broader bullish narrative.
The bullish momentum of UNI, supported by the increase in trading volume and healthy on-chain indicators, suggests that it may break through resistance. However, concerns about liquidity may temper this outlook.