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- The increase in the UNI/USD rate has immediately prompted sellers at the highest levels of the market
- The majority of UNI’s gains over the last 24 hours appear to have come as a result of a market-wide rebound
- At first, it appeared like capital rotations out of the SOL and ADA markets had aided the increases among the top tokens, including Uniswap
The increase in the UNI/USD rate has immediately prompted sellers at the highest levels of the market. In the past 24 hours, Uniswap (UNI) was one of the best performers among the top cryptocurrency tokens by market capitalization, outperforming other major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB) (BNB). The UNI/USD exchange rate surged 13.26% to a seven-day high of $25.68 on Wednesday. Traders continued to buy up the value of the pair on Wednesday, pushing it up to $26.07 at one point, up more than 15% from the previous session’s beginning of $22.66.
The majority of UNI’s gains over the last 24 hours appear to have come as a result of a market-wide rebound. For example, Bitcoin, the benchmark cryptocurrency that has a large effect on the rest of the crypto tokens, soared beyond $47,000 following a 4.85 percent gain on Tuesday during the interval. In the meantime, Ethereum’s native asset, ETH, has risen 4.57 percent in price to $3,500. BNB, XRP, Dogecoin (DOGE), Terra (LUNA), and Chainlink’s LINK all gained on the crypto market. In contrast, the native asset of smart contract platform Solana, SOL, dropped 6.47 percent following a denial-of-service attack on its network. At the same time, Cardano (ADA), one of Solana’s main competitors, fell by more than 1%.
At first, it appeared like capital rotations out of the SOL and ADA markets had aided the increases among the top tokens, including Uniswap. Solana’s market cap has increased by more than 400% quarter-to-date as a result of its entry into the growing non fungible token (NFT) sector, giving traders a good chance to lock in some temporary profits. The profit-taking situation was also enhanced by the network disruption. Cardano, on the other hand, sparked interest because to its Alonzo update, which turned it into a smart contracts platform for the first time since its introduction. Furthermore, ADA’s year-to-date return of 2,500 percent provided traders with enough opportunity to “sell the news” and make profits.
The stronger performance of Uniswap in the preceding 24 hours was also influenced by rumors that owning UNI would allow users access to airdrop tokens. Brendan Murray, content marketing manager at Boston-based blockchain research firm Flipside Crypto, recently referenced Twitter user Jr3225’s study in a blog post. Many UNI holders, according to the report, were unaware that they may get 9.15 million MIR tokens from the synthetic asset platform Mirror Protocol in an airdrop in December 2020. LUNA holders might receive more free MIR tokens than UNI holders, as MIR/USD has increased over 200 percent this year. Uniswap has tested a support confluence of falling trendline resistance and the 38.2 percent Fibonacci retracement graph ($26.093) (drawn from a $42.89 swing high to $15.70 swing low).
Near the confluence, sellers seized control, causing the UNI/USD to drop 4.59 percent to an intraday low of $24.50. The next level of support is a junction of the 23.6 percent Fib line ($22.12) and the ascending trendline, which together form a rising channel. Unless the pair crosses the rising channel’s upper trendline at $42.89, an interim positive prognosis calls for UNI/USD to break above $26.09 and move toward the following Fib levels ($29.30, $32.51, and so on). Meanwhile, UNI/USD could break below the $22.12 Fib line and channel support, aiming for $15.70 in a bearish scenario.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
