SUI and Uniswap could rally, erasing recent losses

Sui extended its gains by 4% on Friday after surging almost 14% this week. Uniswap is starting to recover on Friday after losing nearly 8% in value over the weekly time frame. The two tokens may offer higher profits to their holders in the coming week.

Bitcoin’s eye is recovering, Sui and Uniswap may recover together

While Bitcoin (BTC) has lost nearly 3% of its value this week, the largest cryptocurrency is starting to recover on Friday. At the time of writing, BTC was trading above $94,000, gaining around 3% on the day.

BTC/USDT daily price chart | Source: Crypto.news

While Bitcoin attempts to recover, altcoins Sui and Uniswap show potential for gains next week. SUI could extend its rally and climb higher. Uniswap is currently erasing last week’s losses, with UNI adding nearly 4% on Friday.

SUI and UNI are trading at $5.0865 and $13,371 at the time of writing.

On-chain and technical indicators support gains

Uniswap’s on-chain indicators support the bullish thesis for the DeFi token. The network’s realized profit/loss metric shows a slowdown in profit taking by UNI token holders over the past two weeks. Typically, as profit taking slows down, the selling pressure on the token decreases.

Volume trended upward between December 28th and January 10th. In addition to the increase in price, increased volume is also helping token gains.

The supply of UNI tokens held by large wallet investors has increased steadily since mid-December. This supply represents UNI held outside of exchange wallets, so the increase in these assets does not contribute to selling pressure. This is a sign that investors have increased confidence in UNI.

The Binance funding rate has been consistently positive for about a month, supporting the bullish thesis for the UNI price.

UNI on-chain analysis | Source: Santiment

SUI’s trading volume has been on an upward trend with high positive increases between December 27th and January 10th. During the same time period, rates of funding raised by SUI turned positive on major exchanges and prices increased.

The percentage of stablecoin supply held by whales exceeding $5 million has increased over the past three days, indicating stronger demand for the token on exchanges.

SUI on-chain analysis | Source: Santiment What to expect from SUI and UNI next week?

UNI is consolidating near $13.05, which is the 50% Fibonacci retracement level of the rally from the $6,640 low to $19,459 high. Relative strength index, a key technical indicator, supports further gains in UNI.

The RSI is sloping upwards and reading 44, close to the neutral level.

As the moving average convergence divergence indicator flashes red histogram bars below the neutral line, traders need to keep their eyes peeled; This means there is an underlying negative momentum in the UNI price trend.

If UNI continues its gains, the DeFi token could target the January 6 high of $15,595. UNI could test the resistance at $15,595, indicating a 17% increase in the token price.

UNI/USDT daily price chart | Source: Crypto.news

SUI is in an uptrend that starts in November 2024. The Layer 1 blockchain token is near a peak of $5.3772. SUI could continue its uptrend and rise towards the 127.2% Fibonacci retracement from $6.4037.

SUI could rise 26% and test the resistance at $6.4037.

The RSI and MACD support the bullish thesis for the Tier 1 token, with the RSI sloping upwards and reading 60. The MACD is showing green histogram bars above the neutral line, signaling positive momentum underlying the SUI price trend.

SUI/USDT daily price chart | Source: Crypto.news State of the crypto market

Trade Nation Senior Market Analyst David Morrison told Crypto.news in an exclusive interview:

“Bitcoin looks a little busier this morning and has regained most of yesterday’s losses.”

In their in-depth review of the market, analysts at Crypto Finance observe:

“BTC faced another setback this week when the US Department of Justice announced its approval to liquidate 69,000 BTC seized from Silk Road. This potential sale, valued at approximately $6.5 billion, appears to have spooked traders and eliminated weak hands. Why is this important? DOJ’s BTC holdings represent a significant portion of total market liquidity. This news further fueled the fire in an already unstable macro environment.

Despite this, BTC retained the key support around $92,000, but a break below this level could pave the way for a deeper pullback.”

The 24-hour liquidation in the crypto market surpassed $329 million on Friday. Bitcoin is causing liquidations of more than $88 million along with the consolidation of the largest cryptocurrency. Investors need to closely monitor liquidations next week to determine whether the market recovers and makes room for higher demand in crypto.

Reason for optimism as US regulatory outlook improves

Elliptic’s David Carlisle explores crypto policy and regulations in his latest research on Elliptic. Carlisle states that 2024 is the year of important developments that will affect the crypto space in the coming years.

Carlisle believes that crypto policy and regulations may see progress in 2025. In the US, banking regulators may reduce barriers to financial institutions’ interaction with crypto, and President-elect Donald Trump’s presidency could encourage pro-crypto sentiment.

Key appointments such as SEC Chairman, AI and Crypto Czar, and the new President’s CFTC Chairman could influence regulatory and policy approaches to crypto in the US.

Ripple CEO Brad Garlinghouse recently announced that 75% of the company’s open positions are now US-based and stated that the “Trump effect” was a factor in the company’s decision. Increasing optimism among crypto firms and a favorable regulatory environment could support crypto demand among US-based traders.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.