Uniswap Price Prediction: UNI trading at $25.40 but price movement uncertain, consolidation needed

TL;DR Breakdown

• Uniswap price prediction shows the crypto coin has plunged 60 percent from its early May high.
• Uniswap recent price dip saw UNI settle above the 200-day Simple Moving Average.
• Uniswap version 3 emerges as the second most significant decentralized exchange (DEX) in terms of volume.

In the last 24-hours, Uniswap’s price movement took a 53 percent dip before rebounding by 40 percent during the close of trading yesterday. This decisive close managed to settle Uniswap well above the significant 200-day Simple Moving Average. Credits to the price rebound and improving market conditions, Uniswap is now in a position where it is likely to experience a relatively tight price consolidation in the near term.

Uniswap Price Prediction: General price overview

At the time of writing, Uniswap version 3 is now considered as the 2^nd most significant Ethereum-based DeFi (Decentralized Finance Protocol) on the pioneer cryptocurrency’s mainnet. According to a renowned crypto researcher, Ryan Watkins, Uniswap version 3 hit more than 80 percent of the volume as its predecessor, Uniswap version 3. Uniswap version 3 has processed more than $6 billion of weekly volume in the short period of its existence. This is not an easy feat as it is more than its competitor, SushiSwap, which clocked around $5 billion.

One factor contributing to Uniswap’s bullish volume numbers is the early May euphoric trend towards meme-tokens and dog-tokens. SHIB/ETH pair emerged as the top version 3 pair according to the number of trades and fees generated. Dogelon Mars and Akita Inu are part of the top 6 cryptos by the number of trades they recorded. Despite its impressive run in the volume front, Uniswap has been reprimanded for not fulfilling its gas fee reduction promise. However, this has not discouraged users from accessing and capitalizing on the network.

Uniswap price movement in the past 24 hours

Uniswap formed an ascending pattern during its trading sessions between February 20 and May 19. At the time, the 50-day Simple Moving Average emerged as a critical support line during price retracement. At this level, Uniswap’s daily volume did not attract an above-average number. Additionally, the daily RSI did not show a bullish picture at the March high and the May high. According to the 24-hour price movement, Uniswap appears to be repeating this trend.

On looking at Uniswap’s 24-hour chart, the crypto coin’s Relative Strength Index is not printing any positive movement along with the price. This signals the exhaustion of the bullish narrative for Uniswap. Additionally, the 24-hour chart shows UNI’s price declined below the lower trend line of the descending channel below the 200-day Simple Moving Average. Coincidentally, the 200-day Simple Moving Average coincides with the 61.8 Fibo retracement level. Although Uniswap recorded a 60 percent intra-day low from May 3 high, the crypto asset managed to register a 40 percent uptick by the end of trading yesterday. The 40 percent rally saw Uniswap settling above the significant moving averages, including the 200-day.

Uniswap 4-hour chart

At present, Uniswap needs time to shake off the price compression generated by yesterday’s price buoyance. However, Uniswap bulls need to ensure the crypto coin stays above the 200-day Simple Moving Average for the likelihood of a bullish narrative. According to the 4-hour chart, the 38 percent and 50 percent retracement levels at around $27 and $31 are emerging as influential levels during bull runs.

Conclusion

If Uniswap has a decisive close above the 50 percent retracement level, it will face a new resistance level at the $32 price region.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/uniswap-price-prediction-2021-05-21/