As a researcher with extensive experience in cryptocurrency analysis, I believe that the recent price action of Uniswap (UNI) is an interesting development for investors and traders. The Bitcoin price surge above $63,000 on Saturday ignited a bullish sentiment in the crypto market, lifting several altcoins to double-digit gains, including UNI.
The Bitcoin price surge above $63,000 on Saturday sparked optimism in the crypto market, causing several altcoins to soar with double-digit percentage gains. The renewed buying interest significantly boosted Uniswap’s token price, allowing it to bounce back from its support at $6.6. A close examination of the daily chart reveals this price movement as the emergence of a potential double-bottom pattern, suggesting a probable upward trend in the coming days.
UNI Rebounds as Uniswap Foundation Reveals Strong Financial Footing
UNiswap’s native cryptocurrency, UNI, experienced a sharp correction in early March when its price reached a peak of $17.06. This bearish trend caused the value of the asset to drop by approximately 65%, reaching a low of $5.9. However, UNI later bounced back above the support level of $6.6.
Previously discussed backup, combined with a 78.6% Fibonacci pullback level and an upward-trending line of support, have contributed to UNI‘s formation of a local base in pricing.
In a recent announcement by Wu Blockchain, the Uniswap Foundation revealed its year-end financial report as of December 31, 2023. The foundation reportedly managed assets valued at $45.26 million, which included US dollars and stablecoins, along with 780,000 UNI tokens. The cash and stablecoins are set aside for grants and everyday expenses, while the UNI tokens are reserved for employee incentives. Additionally, the foundation intends to distribute $30 million over the next two years.
As of December 31, 2023, the Uniswap Foundation disclosed its year-end financial report, managing a total balance of approximately $45.3 million in US dollars and stablecoins, as well as 780,000 UNI tokens. The USD and stablecoin funds are allocated for distributing grants and covering operational expenses. Meanwhile, the UNI tokens will be designated for employee compensation in the form of token rewards. Approximately $30 million is held in USD and stablecoins.
— Wu Blockchain (@WuBlockchain) May 4, 2024
This revelation could potentially boost UNI‘s value, given that it underscores Uniswap’s strong financial position and dedication to compensating their team members through token rewards.
On May 1st, the UNI price bounced back from its support at $6.6 and soared 16.5% to its current trading price of $7.58. The double bottom pattern that has formed indicates a potential 10% increase in Uniswap’s price, which could propel it towards the resistance level of $8.375. A successful breakout above this resistance could intensify the ongoing buying trend and push UNI up to the $10.3 mark.
Technical Indicator
- Exponential Moving Average: A bearish crossover between the 50-and-100-day EMA slope could intensify the selling pressure on the UNI token and prolong a sideways action.
Relative Strength Index: The notable higher lows in the daily RSI slope as it surged from the oversold region to 41% indicate the rising buying pressure the asset is witnessing at the $6.6 floor.
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2024-05-04 18:36