- Since a bearish setup was triggered, Uniswap has been in recovery mode
- UNI was trading at $29.39 at the time of writing, up 6% in the previous 24 hours
- UNI must now reclaim levels lost during its mid-May rally in order to rekindle a positive near-term outlook
Since a bearish setup sparked a roughly 13 percent drop to a weekly low of $25.4, Uniswap has been on the mend. UNI must now reclaim levels lost during its mid-May rally in order to rekindle a positive near-term outlook. UNI was trading at $29.39 at the time of writing, up 6% over the previous 24 hours.
4-hour Uniswap chart
As UNI approached the lowest point on its lower trendline of $25.4, a spreading wedge pattern resulted in a 13 percent breakdown. The price has since reversed above the 20-SMA (red) and 50-SMA (blue) (yellow). Moreover, the same appeared to be aiming for a move above the important resistance zone of $30-$31.2.
If UNI can stay close to this ceiling, it can aim for swing highs of $32.6 and $35. Short sellers can be weeded out of the picture using the same method. A failed breakout effort, on the other hand, would likely see UNI trade near $29 before making another shot at the aforementioned resistance level.
A $25 million award has been revoked
The contentious grant provided $25 million to analytics firm Flipside, as well as an oversight committee. Dune Analytics, on the other hand, moved to Twitter to argue that the grant belonged to the community members, not the service providers. They urge the $UNI community to reject this misappropriation of cash and monopolization of $UNI analytics awards. If our proposal is rejected, we will assist in the creation of a vendor-neutral proposal for $UNI analytics awards that will benefit the community.
The oversight committee members, according to Jason Choi, general partner at The Spartan Group, had a conflict of interest because it included Flipside Crypto investor Nic Carter and CEO Dave Balter. The grant appears to have been terminated after 46.9 million people voted against it, resulting in hours of arguments, Twitter replies, and threads.
The UNI price is preparing for a new high
After soaring 51% from August 3 to August 16, the UNI price retraced around 19%. This drop has allowed bulls to re-energize and re-enter the market stronger, as evidenced by Uniswap’s 2% gain after testing the $25.39 support level. The uptrend will be confirmed when the UNI price closes above the $30.05 resistance level and sets a swing high above the August 16 high of $31.31.
On the other side, if the upswing is not supported by enough purchasers, it is likely to revert and shatter the $25.39 demand barrier. The price of UNI will be pushed down to $22.70 as a result of this move, and a break of this level will invalidate the bullish argument.