Bittime - In the last 3 days, the price of Uniswap's native token, UNI, jumped 25%! This significant price increase also raises the question: what actually happened to UNI? This article will explain why!
About Uniswap: Decentralized Crypto Exchange
Uniswap is a decentralized crypto exchange built on the Ethereum network. Unlike conventional crypto exchanges, Uniswap does not have a single manager. Crypto asset buying and selling transactions on Uniswap are carried out automatically through the Automated Market Maker (AMM) model.
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Launched in September 2020, the UNI token plays an important role in Uniswap governance. UNI holders have the right to propose and approve changes to the protocols governing the running of Uniswap.
In other words, UNI gives the community the power to determine the future of Uniswap.
Also read: UNI Token Analysis and Predictions for 2024
The reason UNI prices rose was triggered by investor confidence
This fantastic increase in UNI prices cannot be separated from several factors. One of them is the high level of investor confidence in Uniswap. This can be seen from the consistent increase in Uniswap's Total Value Locked (TVL) in the last few days.
TVL itself shows the total number of crypto assets stored in a DeFi (Decentralized Finance) protocol such as Uniswap. The increase in TVL is an indication that more and more investors are confident and willing to store their crypto assets on Uniswap.
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UNI Technical Analysis: Strong Bullish Signal
Source: Bittime
If we observe the UNI price movement chart (technical chart), it can be seen that UNI has just penetrated the consolidation zone (certain price range) with strong momentum.
Also read: Crypto whales are going crazy, breaking LINK, PEPE, UNI, and ENS
The significant increase in trading volume following the breakout event further strengthened UNI's uptrend.
The candle formation on UNI's daily chart also shows a strong bullish signal. This indicates a potential correction (price decline) in the near future. However, strong upward momentum gives UNI prices the opportunity to immediately shoot to higher levels.
Other technical indicators such as the 50-day and 200-day EMA (Exponential Moving Average) lines also show a "golden cross" pattern. This pattern is often interpreted as a strong bullish signal.
It didn't stop there, UNI price also managed to penetrate the narrowing Bollinger Bands on the daily time frame. The MACD (Moving Average Convergence Divergence) indicator and its signal line are approaching higher levels.
Coupled with the bullish crossover between MACD and the signal line, further strengthening UNI's upward price momentum.
The RSI (Relative Strength Index) indicator also shows a bullish picture. RSI UNI is now in the overbought zone and has managed to penetrate level 50, as well as breakout above the 14-day SMA (Simple Moving Average).
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Conclusion
Even though UNI prices experienced a significant increase in a short period of time and were accompanied by high volatility, and the fear and greed index showed "extreme greed" at 76, overall market sentiment towards UNI was still bullish.
Support from strong technical indicators, such as a bullish breakout, golden cross of 50-day and 200-day EMA, as well as increasing TVL and positive signals from MACD and RSI, indicate that UNI's upward momentum is likely to continue.
As an illustration, the nearest support levels for UNI are in the range of $3.3 and $4.80. Meanwhile, the nearest resistance levels are at $11.80 and $15.60.
But keep in mind, investing in the crypto world carries high risks. This article is for informational purposes only and should not be considered a recommendation to buy or sell any particular crypto asset. Always do in-depth research and analysis before making an investment decision.
How to Buy Uniswap (UNI) on Bittime
You can buy and sell Uniswap (UNI) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Uniswap (UNI) is available on Bittime with the market pair UNI/IDR. To be able to buy UNI IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Uniswap (UNI) on Bittime.
Monitor the price chart movements of Uniswap (UNI), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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Uniswap (UNI) price rises, these are the factors that make its value soar
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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