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Uniswap’s 80% gains in July are in danger with UNI price painting a classic bearish pattern

Uniswap price risks falling 50% from its current levels due to a bearish reversal setup.

Uniswap (UNI) looks ready to post its best monthly performance in more than a year as it rallied approximately 80% in July, but signs of an extended pullback in the near term are emerging. 

Uniswap price nearly doubles in July

UNI's price is having one of its best months ever, reaching nearly $9 on July 30 versus nearly $5 at the beginning of the month, best returns since January 2021's 250% price rally. 

UNI/USD monthly price chart. Source: TradingView

Merge FOMO an UNI "fee switch" proposal

Uniswap's gains primarily surfaced due to similar upside moves in a broader crypto market. But they turned out to be relatively massive due to an ongoing euphoria surrounding "the Merge."

Notably, the Ethereum blockchain's potential transition from proof-of-work to proof-of-stake in September has triggered a buying hysteria among related toke.

Additionally, UNI may also have been drawing its gains from a so-called "fee switch" proposal.

Specifically, community governance system that oversees Uniswap has been discussing whether or not they should grant UNI holders the right to earn 0.5% commission from Uniswap's 3% trading fees while rewarding the rest for liquidity providers.

UNI "rising wedge" still in play

From a technical's perspective, UNI is now heading lower after testing $20 as its interim resistance.

It now eyes an extended pullback toward the upper trendline of its prevailing "rising wedge" pattern—around $8.

However, its price would risk falling even further if it lands back inside the pattern's trading range, defined by two ascending, converging trendlines.

UNI/USD daily price chart featuring 'rising wedge' breakdown. Source: TradingView

That is primarily because rising wedges are bearish reversal patterns.

They resolve after the price breaks below their lower trendlines. Meanwhile, their profit target are typically at length equal to the maximum distance between their upper and lower trendlineswhen measured from the breakdown point.

Related: DeFi’s downturn deepens, but protocols with revenue and fee sharing could thrive

In other wordsUNI's price could fall toward $4.50 by September, down 50% from today's price if the pattern plays out.

Conversely, a bounce back at or ahead of testing the rising wedge's upper trendline could have UNI retest $10 as its interim resistance. In doing so, it could eye an extended upside move toward the $11.50-$17 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Uniswap price risks 45% crash by September despite Robinhood listing

Robinhood listing brought UNI some of its recent gains but it doesn't guarantee an extended bull run.

The latest Uniswap (UNI) chart pattern suggests that investors should be prepared for a correction after gaining nearly 20% over the past week.

A 45% UNI price crash ahead?

UNI's price has been trending upward since mid-June inside what appears to be a "rising wedge," which traditional analysts view as a bearish reversal pattern due to its history of luring bulls into buying fake-out bounces.

Therefore, rising wedges resolve after the price breaks below the lower trendline. Traders typically calculate a rising wedge's downside target by subtracting the distance between its upper and lower trendline from the breakdown point.

UNI/USD daily price chart featuring 'rising wedge' setup. Source: TradingView

That puts UNI's downside target at $3.8 by September 2022, down 45% from today's price if the breakdown begins near $6.52. However, the target would shift upward to $4.65 if the breakdown originates at the apex, i.e., where the wedge's trendlines converge, resulting in a drop of 32.25% from today's price

Interestingly, a rising wedge also formed between February and April. The pattern snapped a 65% upside move, with a broader 70% price slump that took UNI's value to $3.56 per unit from around $12.50.

UNI price bullish catalysts

Simultaneously, Uniswap has also been painting an inverse head and shoulders (IH&S) pattern with an upside target sitting around $9.50, up 40% from current price levels.

UNI/USD daily price chart featuring IH&S setup. Source: TradingView

The bullish setup has one fundamental backing: Robinhood.

Related: Crypto exchange FTX is looking into acquiring Robinhood: Report

Notably, the U.S.-based zero-fee trading app announced on July 14 that it had added Uniswap to its portfolio of cryptocurrencies for its 22.8 million retail investors. 

Robinhood's listing doesn't guarantee an extended bull run, however, as the market has witnessed in Shiba Inu's (SHIB) case.

Notably, the firm's decision to list SHIB assisted the token in rising by almost 20% on April 12 but couldn't help it hold on to its gains. SHIB's price has crashed by nearly 60% since its Robinhood's listing.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Uniswap analysis: UNI price can double based on a classic technical pattern

UNI needs to break above a key technical resistance level to trigger its 100% bull run scenario. Otherwise, a bear flag awaits a 45% price crash.

Uniswap (UNI) market valuation could grow by 100% in the second half of 2022 as it paints a classic bearish reversal pattern.

UNI price bullish setup

Dubbed "inverse head and shoulders (IH&S)," the technical setup takes shape when the price forms three troughs in a row below a common support level (neckline), with the middle one (head) deeper than the other two (shoulders).

Additionally, it resolves after the price breaks above the support level.

The UNI price trend since May 23 checks all the boxes for forming an IH&S pattern, except the right shoulder. A retest of its neckline near $5.71 would form the right shoulder, increasing the possibility of an iH&S breakout scenario, as shown below.

UNI/USD daily price chart featuring IH&S setup. Source: TradingView

As a rule of technical analysis, the price breaking out of an IH&S structure can rally by as much as the maximum distance between its head's lowest point and the neckline. So, UNI's IH&S's upside target comes to be around $9.78, up over 100% from June 2's price.

Conflicting Uniswap price signals

Uniswap's longer-timeframe charts bring attention to resistance levels that could keep UNI from touching their IH&S target.

That includes an interim resistance level of around $6 that has rejected UNI's price lower at least thrice since May. A successful break above the $6-level could have UNI face the February 2022 support of around $7.52 whose test preceded a 75% price rally to $12.48.23.

The $7.52-level also coincides with UNI's 20-week exponential moving average (20-week EMA; the green wave in the chart below), now near $7.90.

UNI/USD 1-week candle chart. Source: Tradingview

Conversely, a decisive pullback from the $6-resistance level could trigger a result in a bearish technical setup, dubbed as a "bear flag."

Related: Finance Redefined: Uniswap goes against the bearish trends, overtakes Ethereum

UNI has already been returning lower after testing levels around $6, which coincides with the flag's upper trendline. That leaves the UNI/USD pair two potential scenarios: decline toward the flag's lower trendline near $3.92, or rebound for a potential breakout above the upper trendline.

UNI/USD three-day price chart featuring 'bear flag' setup. Source: TradingView

UNI's move toward $3.92 would risk triggering the bear flag breakdown scenario, meaning a 45%-plus decline to $2.75 when measured from June 2's price. On the other hand, a break above the upper trendline would invalidate the flag setup altogether.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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SushiSwap leads DEX token gains as SUSHI price rises by 23% in 24 hours

SUSHI price reached its best level in four months while its top rivals Uniswap, THORChain, and PancakeSwap also saw gains.

SushiSwap (SUSHI) prices crept higher on Sept. 16 following another day of gains for decentralized exchange (DEX) tokens.

The SUSHI/USD exchange rate rose by 7.54%, or $1.14, to reach $16.31 for the first time since May 21. The pair's upside move pushed its 24-hour adjusted timeframe profits up to 23%, making SUSHI the best-performing DEX token in the given period.

For instance, UNI, the token representing the leading DEX Uniswap by market cap, jumped 6.23% against the U.S. dollar in the previous 24 hours. Meanwhile, PancakeSwap (CAKE) rose 2.5%, THORChain (RUNE) climbed circa 13%, and Curve (CRV) inched higher by over 4.5%.

The performance of top DEX tokens in the previous 24 hours. Source: Messari

Why is SushiSwap leading the DEX pack?

Decentralized finance sector analyst Kris Kay noted that SushiSwap, as a DEX platform, has lately branched out to more blockchains than its peers. As a result, it has been generating more fees for its users, thus raising the prospect of holding SUSHI tokens.

Specifically, the latest bout of buying in SUSHI markets came a day after SushiSwap announced its deployment on Arbitrum, a layer-2 scaling solution for Ethereum-powered decentralized applications or DApps.

It also revealed that stakers had locked $30 million worth of SUSHI tokens into Arbitrum's smart contracts.

Kay noted that SushiSwap's efforts to scale its DEX solutions across multiple layer-1 and layer-2 chains also cater to its ecosystem's growth. For instance, the platform has launched many new services in recent months, including DeFi liquidity provider Onsen and lending/borrowing dapp Kashi

On Sept. 2, SushiSwap also unveiled its upcoming non-fungible token (NFT) marketplace, dubbed Shoyu. The sales volumes for blockchain-verified unique digital collectibles grew from $13.7 million in the first half of 2020 to $2.5 billion in the first half of 2021. 

SUSHI price outlook

As a result, SUSHI has beaten its DEX rivals in terms of interim returns. Its profits in the previous seven days sit over 45% compared to UNI's 16.93%. Nonetheless, SUSHI lags in year-to-date (YTD) gains, jumping more than 370% compared to UNI's 474% gains.

Meanwhile, PancakeSwap's CAKE has led the top DEX pack after delivering more than 3,330% YTD returns.

"SushiSwap is currently the 5th highest earning protocol," Kay tweeted, hinting that the DEX has a likelihood of growing higher in the coming sessions.

"SushiSwap started out as a decentralized exchange, but it’s evolving to so much more," he said.

"A suite of DeFi products, all generating revenue for the community treasury, and of course SUSHI holders."

Related: Altcoin Roundup: Time to rotate! Data suggests traders are shifting from NFTs to DeFi

On the technical charting front, SUSHI has fallen behind in the recent altcoin market boom. But the SushiSwap token's climb in the recent sessions has had it break above $15, a key psychological resistance level, now acting as support.

SUSHI/USD daily price chart featuring its next upside price targets. Source: TradingView.com

Scott Melker, an independent market analyst, noted that there are thin resistance lines ahead, meaning that SUSHI could head higher to form a new all-time high. The previous SUSHI/USD peak sits at $24.69. Melker added:

"Those lines at the top are the target, although we know that if they flip to support, we will have price discovery for new highs."

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Uniswap V3 launches — UNI prices surges by 8% in minutes

UNI, the native governance token of Uniswap, surged immediately after the Uniswap V3 launch.

UNI, the governance token of Uniswap, the most widely utilized automated market maker (AMM) in DeFi, has surged significantly after the launch of Uniswap V3 on March 23. At just over $35 per token, UNI has gained nearly 23% in the past week

The Uniswap team said:

"Today, we are excited to present an overview of Uniswap v3. We are targeting an L1 Ethereum mainnet launch on May 5, with an L2 deployment on Optimism set to follow shortly after."

With a market capitalization of $17 billion, it has surpassed some major perennial altcoins such as Litecoin (LTC), putting UNI right under XRP whose market cap is over $25 billion. 

UNI/USD 4-hour price chart (Gemini). Source: TradingView.com

Why is UNI and Uniswap seeing strong momentum?

There are two key reasons behind UNI's massive rally in the past two months.

First, Coinbase's planned initial public offering (IPO) in the U.S. market has caused the rerating of exchange tokens and AMMs.

Second, the overall increase in the interest in the DeFi sector has pushed up the valuation of major AMMs, including Uniswap and SushiSwap.

On March 21, the price of UNI reached a new all-time high at $35.2, fueled by the excitement surrounding Uniswap V3. 

Analysts at Intotheblock said:

"Uniswap's governance token $UNI reached a new high of $35.2 with a lot of excitement building around the upcoming v3. In just 78 days of 2021, the protocol did $73.1b in traded volume and over $219m in fees. As well, the Total Value Locked reached a new ATH of $5.23b."
Uniswap statistics. Source: intotheblock

Investors and DeFi analysts say that the release of Uniswap V3, which essentially is the third version of Uniswap, would likely cause a DeFi and Uniswap "boom."

The pseudonymous investor known as "Johnny" wrote:

"In my opinion once $UNI v3 comes out and $ETH 2.0 comes out we will see a larger Uniswap boom than we saw in the summer. The plan is to starting planting your seeds now before it happens"

UNI is already a bluechip

UNI has become the go-to crypto asset to gain exposure to the DeFi market for many investors due to its dominance in the AMM market and high valuation.

Investors have long considered UNI as a bluechip asset, representing the exchange and AMM market within DeFi.

Alongside Compound, Aave and SushiSwap, Uniswap remains as one of the four major bluechip DeFi tokens.

Mike Abundo, a DeFi analyst and investor, said:

"Each Ethereum finance vertical seems to have a venture-driven blue chip and a community-driven blue chip. For lending, that's $COMP and $AAVE. For exchange, that's $UNI and $SUSHI. Wonder if we'll see similar dichotomies arise in Ethereum art and gaming verticals."

As long as the interest in DeFi and the total value locked (TVL) of all DeFi protocols continue to increase, the demand for UNI is expected to rise.

According to Dappradar, the TVL of the DeFi market has crossed $41 billion and has remained relatively stable above this level.

Out of the $41 billion, $4.75 billion comes from Uniswap, which means well over 10% of the entire DeFi market's TVL is in Uniswap.

Particularly as the Coinbase IPO nears, the momentum of UNI would likely accelerate, which would likely also positively affect SushiSwap, BNB, FTT, and other exchange-related crypto assets.

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