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After the positive news Visa added support for USD Coin, Uniswap continues to lead the decentralized exchange sector amid new competitors, with price action for the UNI token still bullish against a basket of its counterparts.
*UNI price edges higher as bulls attempt to prevail on the $30 threshold
*At the time of this analysis, UNI/USD trades at $29.06 level
*Unveiling Protocol Version 3 (v3)
The price of UNI inched higher yesterday against the USD from the weekend market uncertainty and overall correction. UNI/USD seems to maintain its upward progression, yet seems to continue testing the $27.86 confluence zone. Unable to sustain a sideways movement UNI price edges higher as bulls attempt to prevail on the $30 threshold.
The Uniswap (UNI) market cap currently stands at $15.18 billion, ranking UNI 8th on the Coinmarketcap table, with $520 million in trading volume over the past 24 hours. At the time of this analysis, UNI/USD trades at a $29.19 level.
Uniswap Closer to Unveiling Protocol Version 3 (v3)
The upgrade centers on consolidated liquidity, as per the Uniswap project team, giving “individual liquidity providers (LPs) granular influence over what price ranges their capital is allocated to.” All of the individual positions are then merged into a single pool, creating a combined curve on which all participants will trade.
At the same time, the Uniswap v3 guarantees that LPs are compensated for the various levels of risk they take.
4,000x capital efficiency for LPs, low slippage trade execution, and enabling LPs to increase their exposure to their selected assets are just a few of the features that make Uniswap v3 the most versatile and effective for automated market makers (AMMs).
UNI Daily Chart: Ranging
UNI’s strengthening may have been underpinned by the rebound in the cryptocurrency markets. At the same time, the uncertainty in the markets could not deter its recovery from the $27.35 low to end the prior day at the $29.9 level. UNI/USD rose today aiming for the $30 confluence zone and could keep the trader’s attention to the upside intact.
The bias tends to maintain a bullish outlook for the pair as long as it continues to be guided by the ascending trendline incepted since the 22nd of Jan at the $7.01 low.
Although the RSI indicator on the daily chart has surpassed the midline 50 reading, this implies that a correction higher is possible. UNI/USD price needs to find fresh buying orders along its path to breaking the $30 level.
UNI 4-Hour Chart: Ranging
On the 4-hour time frame, bulls recouped losses at the trendline support of $25.61 during previous choppy sessions as investors saw the dip as an opportunity.
After rallying towards the moving average (MA 200) resistance near $29.50, UNI/USD pair is attempting the moving average (MA 50). A bullish breakout could extend the rally past the $30 level.
While market sentiment remains positive, the RSI hovering around the 50 reading could prompt a pullback driven by profit takings. The demand area between $24 and $25 could see strong buying interest if the token cools off. However, selling pressure is unlikely to intensify as $27.86 is the immediate support and a bullish breakout could further depress the bears.
Resistance Levels: $35.28, $33.13, $30.00
Support Levels: $27.86, $24.41, $20.45
Image Credit: Tradingview
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