As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market corrections and bullish reversals. The current state of Uniswap, a decentralized exchange that has gained significant traction in recent years, is no exception to this rule.
On Wednesday during U.S. business hours, Uniswap’s price dropped by more than 2%. This fresh wave of supply has temporarily halted Bitcoin‘s rebound at $57,000, suggesting that the current bearish trend is still in effect. The upcoming weeks are significant for crypto investors as they aim to determine if the market downturn has reached its lowest point.
Uniswap Foundation Q2 Financial Snapshot
In a recent blog post, the Uniswap Foundation shared their Q2 2024 financial report, highlighting strong financial stability and strategic investments. According to the report, the foundation had approximately $36.81 million in USD and stablecoins, along with around 0.68 million UNI tokens, as of June 30, 2024.
The allocated funds will be used for multiple objectives, with a significant portion of $26.12 million set aside for grants. Specifically, about $22.46 million is marked for projects scheduled from 2024 to 2025, while the remaining $3.66 million pertains to obligations stemming from earlier periods. Furthermore, it’s anticipated that operational costs will amount to approximately $10.69 million up until 2025.
In Q2 of 2024, the Foundation distributed $3.22 million in new grants and handed out $2.48 million for ongoing projects. The operating costs for that period totaled $1.6 million, demonstrating the Foundation’s dedication to an efficient and productive work environment. Additionally, the Foundation earned approximately $0.19 million from dividends and interest.
Uniswap Price Signals Bullish Reversal
Starting from mid-June, Uniswap’s price has been on a consistent downward correction path in the daily chart. This bearish shift pushed the asset’s value from $12 to $4.7, representing a significant 60% decrease. Lately, there has been a noticeable increase in demand near the $5 mark, which is supported by the lower trendline of a falling wedge pattern.
Based on my years of trading experience, I have noticed that a pattern formed by downward trendlines converging suggests a slowdown in selling momentum. This is usually a signal for me to be cautious and consider exiting positions or holding off from entering new ones, as it could indicate a potential market reversal. However, it’s important to always do your own research and analysis before making any trading decisions.
A drop in the Relative Strength Index (RSI) down to the oversold zone of 28% may entice investors looking for bargains to enter the market. If the uptrend continues, the UNI price might surge by as much as 43%, aiming to break through the resistance at $8.3 set by the wedge pattern.
In my analysis, when the Bollinger Band indicator is pointing downwards, it suggests that sellers are controlling the movement of this asset. If we see a breakdown from the lower trendline, this could significantly increase supply pressure and potentially cause Uniswap’s price to drop by approximately 32%. The support level at $3.8 may then become a key factor in its recovery.
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2024-08-07 20:50