Uniswap is one of the top 20 cryptocurrencies based on market capitalization, which is up more than 6% in the last week. This boost is the result of news announcing the landing of a $100 million funding round, which makes the valuation of the company (Uniswap Labs) more than $1 billion.
The funding was mainly offered by a Singapore-based sovereign wealth fund and Polychain Capital that helps Uniswap Labs to build their products and make the network the largest decentralized exchange (DEX) in the world.
Indeed, Uniswap is the dominant decentralized exchange for crypto trading that covers more than 70% of all DEX trading volume. If you consider the daily volume on this platform, it easily outperforms its rivals in the market. Pancakeswap is the main DEX competitor, and it logs around $200 million daily trading volume, which is less than Uniswap.
You can compare Uniswap with Coinbase, which is a centralized exchange, but Coinbase has more daily trading volume than Uniswap. The $100 million funding helps to expand their businesses globally, and they aim to enter into new trading markets.
Uniswap must enable non-fungible token trading on the platform to grow its user base and trading volume. It aims to be the best marketplace for digital asset trading. If you are interested in long-term investment in UNI, read our UNI coin predictions.
At the time of writing this post, UNI was trading around $7, but it has crossed the resistance of $6.67 decisively and aiming for the next resistance of $7.24. Uniswap candlesticks are forming in the upper Bollinger Bands, and RSI is also bullish, but we do not think it will cross the next resistance decisively.
The price of UNI will consolidate for a few days within a range of $6.67 and $7.24. It is the ideal time to invest for the short term and wait for the next bull movement. If the UNI price goes down, you should buy more coins to average the price for the long term.
On the weekly chart, Uniswap is in a downtrend, but it has formed a higher low of around $5.5, which can be a sign of trend reversal, and the price may consolidate within the range of $9 and $5.5. You can invest for the long term, but if it goes down from the resistance level, you should book the profit until it forms another higher high to confirm the trend.