Several altcoins are currently on the rise following Bitcoin’s resurgence, and has singled out the as one of those tokens that could rally further as he projects that UNI is set to break out soon from its current resistance level.
Why Uniswap Is Poised For A Breakout
In a shared on his X (formerly Twitter) platform, Martinez noted that the majority of UNI holders were positioned ‘Out of the Money,’ which suggests that the token was preparing for a breakout. Accompanying his post was data from the crypto analytics platform Intotheblock based on the ‘Historical In/Out of the Money’ metric.
The shows that over 75% of the token holders are ‘out of the money’, which means that they were yet to break even in their investments as the average cost price at which they bought these tokens is greater than its current price.
More addresses are out of the money | Source: IntoTheBlock
More addresses are out of the money | Source: IntoTheBlock
Furthermore, the crypto analyst explained that selling pressure has gotten exhausted and that the UNI token has been able to build “an important support” level at around $4. This could serve as a lift-off point for the altcoin.
Key Supply Walls UNI Needs To Break
To further support his breakout theory, Martinez noted two supply walls that UNI “needs” to overcome in order to signal a bullish breakout. According to him, one of these supply walls is at $4.23, where from Intotheblock shows that 7,000 addresses have bought 14.24 million worth of UNI.
The other supply wall is at $4.45, where data from Intotheblock shows that 2,000 Uniswap addresses have accumulated 10.28 million worth of UNI. Whales and institutional players may also be aware of this potential breakout and may be looking to position themselves, as Martinez noted.
The crypto analyst also recently commented on a potential Ethereum breakout. In a different on his X platform, he said that the second largest cryptocurrency by market cap will need to overcome the huge supply wall at $1,960, where from Intotheblock showed that 1.14 million addresses bought close to 33 million ETH.
Meanwhile, Martinez that now is a good time for people to accumulate Bitcoin based on his examination of the past two cycles from the market bottom and the . According to him, a similar trajectory points to the next Bitcoin market top being around October 2025.
At the time of writing, the UNI token is trading at around $4.10, according to from CoinMarketCap.
Uniswap looks ready for breakout | Source:
