Uniswap’s UNI token has faced some intense selling pressure throughout the past few weeks, with it being struck particularly hard by the recent downturn seen across the aggregated DeFi sector.
However, this weakness is beginning to transform into strength as buyers have sent the crypto rocketing nearly 100% from its recent lows.
The intensity of this recent uptrend indicates that bulls might be on the cusp of sparking a parabolic uptrend, with many of the so-called “blue-chip” DeFi assets all screaming higher as of late.
There’s one outstanding catalyst that could also bolster Uniswap’s UNI this week. The UNI reward LP pools that have been running for the past 57 days are about to run dry.
The selling pressure resulting from these LP incentives have been largely thought to have placed some immense downwards pressure on the cryptocurrency’s price.
Once they end, there will be less daily selling pressure placed on the token, giving it room to rally.