Uniswap price close to $7; Will UNI overcome the resistance?

Uniswap is a decentralized crypto exchange that could replace the centralized crypto exchanges in the next few years because these centralized platforms are extremely regulated with customer identifications and other requirements of personal documents.

In centralized exchanges, users must deposit the funds under the platform’s custody. That means if the platform gets hacked, the user’s funds will be lost, and some of the top exchanges have been hacked a few times. That is why crypto enthusiasts are searching for a decentralized exchange that is not managed by a central authority. The decentralized exchange prepares a liquidity pool to process the transactions safely.

However, Uniswap deals with the problem using Automated Market Makers, which Hayden Adams created. In this process, the decentralized exchange (DEX) executes the process using smart contracts.

The DEX platform was launched on the Ethereum network in 2018. After that, it received a fund of $100,000, and it created its own protocol. In 2022, it will be running on Uniswap automated liquidity protocol.

UNI PRICE CHART

At the time of writing this post, UNI was trading around $6.868, consolidating between $5.5 and $7. That means the UNI price is around the resistance level and trading in the upper range of the Bollinger Bands. MACD, RSI, and other technical indicators are neutral, suggesting further consolidation for the next few weeks.

We do not think it is an ideal time to invest for the short term because Uniswap will face resistance around $7 and come back to the level of $5. For a more detailed UNI prediction and technical analysis, visit here.

UNI PRICE ANALYSIS

On the weekly chart, Uniswap candlesticks are forming around the Bollinger Bands’ baseline. The UNI coin has been in an uptrend for the last four months. After taking support around $4, it is consolidating around $6.

We think you can accumulate some tokens for the long term if you are interested in investing for at least the next few years. Please maintain a strict stop loss around the support level.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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