Uniswap Surges: Can Grayscale’s Call Trigger a 36% Rally?

• As of the latest update, Uniswap experienced a rise of more than 4% within a single day
• The trading volume on L2 and Grayscale’s forecasts appeared to influence the market movement

Uniswap (UNI) stands out as one of the leading decentralized protocols in the cryptocurrency landscape, recognized for enabling substantial trading volumes by leveraging smart contracts to establish liquidity pools.

At the time of reporting, UNI was showing strong performance, with its value increasing by 4.16% to reach $7.47. Furthermore, the 24-hour trading volume surged by 22.13%, amounting to $156 million, reflecting a 3.5% volume-to-market ratio.

This indicates UNI’s potential as a solid investment choice.

Uniswap price forecast

Examining the UNI/USDT trading pair, technical indicators revealed a bullish outlook as UNI recently broke through an ascending triangle formation. Such formations typically indicate accumulation, suggesting that major investors and institutions are stepping into the market.

This specific pattern had been in development for a month, and the breakout resulted in a price increase of over 10%. However, after the last 24 hours, it settled with gains of 4% — a healthy consolidation.

Source: TradingView

Thus, the key question is – Will UNI sustain its upward trajectory? Currently, external factors are aligning, with the potential for prices to reach $10 by the fourth quarter of 2024, offering a 36% increase from its current price.

The MACD also turned bullish, indicating that buyers are maintaining dominance. The histogram bars further signified positive momentum, although not at its peak level.

Moreover, the RSI signaled that UNI was overbought but still had some room for additional gains before reaching levels of reversal. Collectively, these factors indicate a bullish outlook for UNI in the near future.

Monthly L2 trading volume and UNI v4 update

Uniswap’s on-chain metrics further reinforce this optimistic view. The monthly Layer 2 (L2) volume on the Uniswap protocol has nearly tripled compared to last year, and the current month has not yet concluded.

This notable rise in L2 trading volume signifies heightened interest and engagement with Uniswap.

Source: Uniswap/X

In addition, Uniswap’s forthcoming v4 update will introduce “Hooks,” a novel feature that allows liquidity pools to establish specific conditions.

This innovation could enhance various functionalities but also raises certain concerns. For instance, a community-developed “KYC” hook may limit access to only those holding a verified KYC wallet.

Grayscale’s latest analysis

Ultimately, Uniswap continues to garner interest from leading research firms. Grayscale has recently included UNI in its list of cryptocurrencies anticipated to perform well in Q4.

This list also features other promising assets such as Sui Network (SUI), BitTensor (TAO), and Optimism (OP), among others. Conversely, tokens like Render (RENDER) and THORChain (RUNE) have been removed from the list.

Source: Artemis, Grayscale Investments

The current price movements, technical indicators, and on-chain metrics all suggest a bullish outlook for UNI in Q4 2024. With increasing trading volumes and a solid market position, UNI appears well-positioned for further growth.