Uniswap's UNI token has seen a nice 3.27% price surge over the past hour to trade at $5.92 according to our data provider CoinStats.

Looking at the volume, Uniswap has seen $64.25 million worth of UNI trade hands over the last 24 hours. That's lower than during peak periods, indicating somewhat limited trading activity likely contributing to the rangebound action.

Zooming out further, Uniswap remains up a solid 9.93% over the past month but down 10.33% during the last 6 months. This shows the major correction that occurred after UNI hit its all-time high around $45 during the 2021 bull frenzy.

Analyzing the charts, Uniswap appears to have found a floor around $5 after breaching below key support at $10 earlier this year. I expect this new trading range between $5-10 to hold over the coming months barring any major crypto market volatility in either direction.

However, the strong on-chain activity and fundamentals could drive Uniswap back towards its highs above $40 later this cycle if DeFi and altcoins return to favor.

What Price Could Uniswap Reach This Cycle?

Given Uniswap's substantial gains in 2021, I think +100% - +200% returns from current levels is a reasonable best-case scenario for this cycle top.

That would put Uniswap potentially topping out around $15-$25 if the crypto bull market sees strong momentum return. Hitting the higher end of that range would likely require overall crypto market cap swelling back towards $5 trillion+ along with surging DeFi activity.

Of course, if crypto sentiment remains subdued, Uniswap may continue consolidating in the $5-10 range for an extended period. But its solid fundamentals should drive a recovery long-term as adoption continues growing.

Should You Buy Uniswap in 2023?

Uniswap remains one of the top decentralized exchanges and liquidity protocols in the DeFi space. Its innovative Automated Market Maker model and substantial network effects give Uniswap an edge.

For investors bullish on DeFi with a higher risk tolerance, accumulating UNI during periods of fear and greed-driven weakness makes sense. Dollar cost averaging can help smooth out entry timing risk.

As always, ensure you diversify and only invest discretionary capital you can afford to lose. UNI marks a higher risk/reward DeFi focused bet compared to foundational assets like Ethereum. But its disruptive potential still makes it compelling as a portion of a balanced crypto portfolio.