- On Monday, Uniswap (UNI) price soared by over 4% on its daily chart, soaring its value from $3.38 to $3.55 with a market capitalization of $2.25 billion.
- After a dip in the last week, the cryptocurrency is giving a sign of recovery with a neutral-to-bullish momentum.
- With the upward momentum, the cryptocurrency is heading toward a major resistance level at around $3.65 to $3.70.
On March 30, Uniswap (UNI) price witnessed a jump on its daily chart, soaring by over 4% on a daily chart, sparking euphoria in its community.
The upward momentum in Uniswap price was seen after a bullish sentiment in the overall crypto market.
According to CoinMarketCap, Uniswap (UNI) price is currently revolving at around $3.48 with a market capitalization of $2.2 billion and daily trading volume at around $126.84 million.
Why Is Uniswap (UNI) Price Soaring?
Over the previous week, Uniswap witnessed a small drop of approximately 1%, but it recovered on Monday when most cryptocurrencies gave a sign of rebound.
According to experts, the cryptocurrency is experiencing this rebound after a technical recovery. UNI bounced from recent support levels around $3.35. Some indicators are giving neutral-to-bullish signals in the short term, with rising volume helping the upward momentum.
However, there is an uncertainty around its long-term upward trajectory as the price is likely to face major resistance around $3.65 to $3.70.
One of the major factors in the Uniswap price surge is its strong performance in decentralized finance (DeFi). Recent developments like Uniswap v4 developments, along with its integration with MetaMask, have helped the protocol to expand its ecosystem.
However, this price surge was expected after a dip last week. If UNI holds above $3.46 and breaks $3.57 with strong volume, it could go for higher levels around $3.70. On the other hand, if it drops below $3.35, then it may bring it back toward the $3.20 support level.
Last week, Uniswap’s native token UNI witnessed a drop. The price dropped from around $3.61 on March 24 to as low as $3.29 by March 29. This is around 7% to 9% over the period.
The drop was seen after crunching trading volume on DeFi and growing questions on swap incidents. On the DeFi protocol, traders have faced multiple failures or high-slippage swaps on the interface. While the protocol is not directly responsible for this, it was linked to high network congestion and MEV activity.
Uniswap’s Total Value Locked (TVL) and weekly fees had already been declining in recent months. This is adding to the selling pressure. By March 30, UNI was showing signs of recovery.
As the ongoing conflict between the United States and Iran enters its second month, the global financial market is facing turbulence due to the energy crisis. Investors are pulling back their investments from volatile assets like crypto.
DeFi protocols have recorded a major drop in both trading volume and transaction fees. Many users are stepping back from activities such as lending, borrowing, and token swapping. This drop has resulted in lower activity across major platforms, including Uniswap, Aave, and others.
The total crypto market capitalization is currently revolving around $2.29 trillion after recent losses. Protocol fees, which are mainly generated from trading and borrowing activity, have also dropped.
According to DeFiLIama, the total value locked across DeFi protocols is currently around $93.01 billion. The growing oil price and fear of inflation around the world have also damaged the crypto sector. However, the protocol is still holding the top spot in the leaderboard of DEX volume.
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