Uniswap Becomes Top DEX on Polygon as Whale Transactions Heighten

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Uniswap Becomes Top DEX on Polygon as Whale Transactions Heighten
  • Uniswap’s volume jumped to $213 million, making it the number one DEX on Polygon.
  • A whale sent 2.2 million UNI into Coinbase but the altcoin price stabilized.
  • The RSI and CMF increased and may push UNI into the $4.20 region soon.

Uniswap (UNI) grabbed 42% of all the DEX volume on Polygon (MATIC), making it the top Automated Market Maker (AMM) operating on Polygon. The landmark was shared by Uniswap Labs on X (formerly Twitter). According to the post, Uniswap’s DEX volume was as high as $213 million in the last seven days.

Uniswap Leads

One reason Uniswap was able to achieve the milestone was through the introduction of the Uniswap Wallet. Released in April 2023, the DeFi protocol launched the mobile wallet to provide easy access to the DeFi and scaling solutions available in the industry.

The surge in DEX volume suggests a rise in liquidity. This liquidity increase also reflects tokens had been often traded on the Uniswap exchange. Interestingly, shortly after the disclosure, a whale sent 2.2 million UNI into Coinbase.

Oftentimes, whenever a large transaction enters an exchange, it’s a sign that a sell-off may soon occur. However, UNI showed strength in the last 24 hours. According to CoinMarketCap, UNI’s price was $4.17 at press time — which was almost the same price it was on September 11.

UNI Price Action

Based on the UNI/USD 4-hour chart, the support at $4.24 on September 1, provided the avenue for a price increase to $4.50 on September 3. However, the same $4.24 region was culpable as bears flocked around UNI, pushing the price down to 4.05.

The drop in price led UNI’s Relative Strength Index (RSI) to 18.29. But at the time of writing, the RSI had risen to 40.35. The recovery of the indicator suggests the increasing presence of buyers which was also responsible for the 24-hour price stability.

If the RSI crosses 45.00 or tries to approach the 50.00 ceiling, then UNI may jump to $4.40. Furthermore, the Chaikin Money Flow (CMF) seemed to support a price increase bias. At the time of writing, the CMF was 0.13.

UNI/USD 4-Hour Chart (Source: TradingView)

Although the CMF doesn’t operate as a stand-alone indicator, its increase implies a rise in UNI accumulation. So, it is likely that UNI might rise much more than $4.17. However, traders may need to watch out for distribution before opening a long UNI position.

If the CMF drops below zero, then longs may face liquidation. But if that does not happen, then UNI’s first target may be between $4.20 and $4.25.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss