Uniswap Price: Amid a sluggish market moment, the Decentralized exchange Uniswap’s governance token (UNI) skyrocketed by 55% on Friday. The massive inflow by investors followed a new proposal by a key Uniswap Foundation leader to upgrade the protocol’s governance system. The sudden upswing challenges a 2-year-long resistance indicating a pivot change in the UNI’s market dynamic.
Also Read: Uniswap’s 70% Price Rally Helps DeFi Steal Spotlight from AI Tokens
Is Uniswap Price Coin Heading to $20?
Uniswap Price| Tradingview
An analysis of the daily chart showcased the Uniswap price has remained in a sideways trend for nearly 2 years, encapsulated between the $12.5 and $3.3 mark. Amid the broader market trend, the UNI coin entered a new recovery in late October 2023 when the price rebounded from $3.5 support.
In the past 4-months, the UNI price recovery surged 210% to reach the current trading price of $11.9. However, a significant portion of this recovery was obtained recently as altcoin value surged 60% within the last 48 hours.
The sudden surge is likely triggered by a new proposal of UF Governance Lead @eek637 aims to revamp the Uniswap Protocol’s governance by rewarding UNI token holders who stake and delegate their tokens. This initiative is designed to enhance community participation and governance efficacy within the Uniswap ecosystem.
🔈 New Governance Proposal Posted 🔈
UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol’s governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
— Uniswap Foundation (@UniswapFND) February 23, 2024
By incentivizing token holder engagement, Uniswap is not only strengthening its governance model but also reinforcing its position as a leading decentralized exchange in the DeFi sector.
Also Read: Bitcoin (BTC) Price Flirts Near $51K Amid $233 Mln Bitcoin ETF Inflow
Rounding Bottom Pattern Signal Major Trend Reversal
Uniswap Price| Tradingview
A look at the weekly time frame chart shows the ongoing rally in UNI price is developing a rounding bottom pattern. This chart pattern is a major sign of a downtrend bottoming and a new start of a recovery trend in an asset. Amid the current rally, the coin buyers recently challenged the pattern’s neckline resistance at $12.5. A potential breakout from this barrier will intensify the recovery momentum and set the potential target of $21.
However, it’s reasonable to expect a minor pullback in UNI price following its aggressive surge.
Exponential Moving Average: A sudden uptick in 20-and-50-day EMA reflects an aggressive recovery momentum.
Average Directional Index: The ADX slope at 31% indicates the UNI price may need a minor pullback to revive from exhausted bullish momentum.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.