Prominent crypto analyst Rekt Capital suggests that Uniswap’s service token UNI is set to enter a strong uptrend by converting a significant resistance level into support. The analyst highlighted that UNI is on the verge of a major breakout from its macro market structure and needs to close above the top of this formation to enter a new macro uptrend.
According to Rekt Capital’s analysis, UNI is currently trading around $6.25, slightly above the resistance line mentioned by the analyst. If the altcoin surpasses the next resistance around $7, it could potentially jump to $50.
Rekt Capital also pointed out the decline in market dominance of the largest stablecoin, Tether (USDT), suggesting that stablecoin holders might shift towards Bitcoin and other altcoins. The decrease in USDT’s dominance implies that investors are looking for more risk and are eager to move from stablecoins to BTC and altcoins.
Commenting on Bitcoin, Rekt Capital noted that the largest cryptocurrency is in a bull market cycle similar to the years before the 2019 and 2015 block reward halvings, indicating that we are just at the beginning of this cycle.
Miners are anticipating the next block reward halving in April 2024, which will reduce the block reward by 50 percent.