As a seasoned analyst with years of experience observing the cryptocurrency market, I can’t help but feel a sense of anticipation and excitement about the current state of Uniswap and DeFi as a whole. The upcoming congressional hearing on decentralized finance is a significant step forward in legitimizing this burgeoning industry, which has long been shrouded in regulatory uncertainty.
Despite facing regulatory oversight from the U.S. Securities and Exchange Commission (SEC), the price of Uniswap appears to be displaying a bullish trend that hints at a potential reversal.
Today, at 10 a.m. Eastern Time, the inaugural congressional hearing dedicated to Decentralized Finance (DeFi) will take place. This marks the start of numerous discussions intended for shaping the U.S.’s DeFi regulations.
What Does the DeFi Hearing Mean for Uniswap Price?
As an analyst, I’m sharing that today, I’ll be part of a discussion hosted by the United States Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion. The topic at hand is “Decoding DeFi: Breaking Down the Future for Decentralized Finance,” which aims to delve into the appropriate policy framework. Among the witnesses expected to appear is Rebecca Rettig, the Chief Legal and Policy Officer from Polygon Labs.
In an interview on the Unchained Podcast, Republican Congressman French Hill stated that regulatory bodies under the Biden-Harris Administration are utilizing rule-making and enforcement tactics to effectively stifle the growth of Decentralized Finance (DeFi). This novel financial framework, as heard in this novelty, presents a superior system within the DeFi sector and introduces a fresh perspective.
The condition of Decentralized Finance (DeFi) within the U.S. is facing challenges at present, as numerous DeFi projects are under examination by the SEC. However, statistics from Statista reveal that Uniswap saw more users from its home country, the United States, compared to other nations in August 2024. This implies that Uniswap could potentially reap significant benefits during these policy discussions.
The cost of UNI has dropped by 2.2% over the past 24 hours and is currently valued at $6.55. With recent signs of approval from the administration regarding DeFi, UNISwap’s price may surge by approximately 150% if market conditions continue to be favorable, hinting at a potential breakout rally.
UNI Price Analysis: Get Ready For $16
The current trend for Uniswap’s price suggests it’s forming a ‘falling wedge’, which is usually a sign of an upcoming bullish turnaround. As we get closer to the top of this wedge, it appears that a significant price shift or breakout could happen soon.
At the lower end of its current pattern, around $6.5, lies significant support for UNI’s price. Conversely, at approximately $7, there is strong resistance. Notably, beyond this range, a key resistance level can be found at $16, which coincides with a previous peak (point B).
The asset’s price action shows consolidation near the wedge’s resistance. A large green candle forming with increased volume could indicate a bullish breakout.
The key shape of this chart pattern is known as a falling wedge, which takes precedence in technical analysis. The crucial part to watch for is the price movement at the top of this wedge. If the breakout happens and the price exceeds $9.00, aiming for $16.00 becomes a viable possibility, offering approximately 139% increase from the present position, given that the breakout is confirmed.
If the predicted surge in Uniswap’s price doesn’t occur as expected, there’s a possibility that its price could fall to $4. This level is significant because it represents the bottom of the wedge formation. Continued selling activity might push the price even lower to around $2, which would contradict the current bullish outlook.
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2024-09-10 12:10