Uniswap’s UNI token has remained remarkably steady over the past 24 hours, holding at a stable price of $12.17. This price reflects an almost zen moment of calm in what is otherwise a tumbling crypto market. In recent days, the broader crypto space has taken a beating. The BTC price dropped 4.08% in the past week, and ether (ETH) decreased by 7.47%. Yet, despite this clear downward trend in the overall crypto market, the Uniswap token continues to seemingly hold its own, with relatively little price movement over the past few days.
The recent progress surrounding Uniswap has brought a mix of upbeat and worrisome tidings. Uniswap was in the spotlight when it went for a $35 million airdrop of its governance token, UNI, ahead of what should have been a low-key announcement about the protocol’s next (fourth) major version [Source: manilatimes.net]. Uniswap had said that the new version would be launching on something called “X,” which turned out to be the not-so-undisclosed platform formerly known as Twitter, but also serves as a public billboard in the event of a major protocol overhaul.
This moment of excitement for early participants and potential new users of Uniswap was then marred by an analysis that (presumably) Uniswap didn’t want to be associated with: AMBCrypto published a piece suggesting that bad price action meant that UNI was forming “bearish patterns” on the daily charts, and could suffer a 20% drop “in the near future” [Source: AMBCrypto.com].
Market Analysis
- An in-depth analysis of UNI from a technical perspective reveals that the token’s price has been spinning within a narrow range and forming a symmetrical triangle pattern on the daily chart.
- This pattern usually indicates a disagreement between buyers and sellers, with the possible price breakout in either direction.
- Our analysis of trading volume suggests that trader indecision is at an all-time high for this token, as volume has been steadily declining since the end of May.
- Two key price levels to watch in the next few days: support at $11.50 and resistance at $13.00. A clear breakout (up or down) is needed before any new trades can be taken. Until then, the price is likely to continue this pattern of low volatility.
Social and on-chain analysis further refine our understanding of UNI’s market dynamics. The social sentiment metrics suggest a community full of mixed emotions. It is certainly not a boring time for the Uniswap community, given the wild range of feelings members express about it. Some definitely express frustration about the platform’s listing policies, with a not insignificant number complaining to and about a variety of entities associated with the platform.
Directly above their heads are Layer 2 projects (ZKSync, StarkWare, etc.), which users are incredibly excited about. Network activity has been at all-time highs, comprised mainly of direct user interactions with the Uniswap platform and Layer 2 project testnets. Meanwhile, the core development team has been grinding away during the intense bear market, pushing through an incredible number of protocol upgrades and just overall goodness.
The price is rising, and there are a number of reasons that we feel compelled to get into those next.
Market Outlook
In the larger market context, UNI’s performance is closely linked to the overall sentiment in the DeFi sector. The next catalysts, like the V4 rollout and the official X announcement, could be what tips things over into a bullish breakout. However, there are clouds on the horizon—a couple of regulatory issues seem to be brewing, of a kind that seems to happen every couple of months. Could this be another opportunity to buy UNI at a lower price? Projections for future UNI price seem cautiously optimistic—more a sentiment of “We should be okay, as long as things stay like this.”
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.