Uniswap Crosses 50 DMA; Will UNI Reach $6.5?
Uniswap is the finance-oriented blockchain ecosystem that explores the applications of smart contracts from the Ethereum blockchain to facilitate decentralized exchange services. Uniswap enables users to buy, sell and swap their tokens with the best possible rates across different exchanges because of Automated Market Maker.
Users can benefit by pooling their token holdings in the liquidity pools that enable swift transactions. Increasing cryptocurrency trading created the right environment for its scalability and expansion.
UNI is the native token for the Uniswap protocol meant to vote over its treasury decision, a roadmap of its DEX platform, and governance of its native protocol. The growth of decentralized economies and trading could help UNI take off.
As the crypto market’s value increases towards its previous highs, we can expect an increase in exchange movements and a surge in UNI token demand. Uniswap has a market capitalization of $3,963,720,686 based on the circulation of 73% of its earmarked 1 Million Uniswap tokens.
UNI token has finally been able to show a positive light for buyers. At the same time, the crypto market is just 10% short of reaching 1 trillion in market capitalization. Read more about the UNI token before investing in it to save yourself from any loss.
UNI token’s first attempt in June 2022 to breach its 50 EMA resistance failed after week-long consolidation. Failure to break out from this level forced another round of profit booking, enforcing a significant decline in market value.
$4.6 developed as an immediate support level with back-to-back wicks showing a positive buying sentiment from these levels. Positive consolidation above the 50 EMA curve could bring an uptrend in the short term.
Despite the RSI indicator and price reaching similar levels, the drop in transactional volumes could be a red flag indicating a profit booking on higher levels. Compared to May 2022 dip RSI indicator shows immense positivity. The support levels have dropped to $3.19, with immediate support moving to $4.6. The resistance based on moving averages has moved down to $6.54. The moving average trend shows a declining price from the long-term perspective.
Another positive element is the MACD indicator entering the positive axis reduces the probability of negative momentum. $6.5 will be the obvious target for traders if the market trend continues to move toward previous levels. Facing resistance or consolidating near these levels could incite a profit booking.