- Despite the sharp decline in UNI’s price, Uniswap is booming and now has nearly USD 2 billion in total value locked.
- According to some chart analysts, the Uniswap (UNI) price may have bottomed out, while a breach below $4.70 could mean further losses.
Last week, the newly launched Uniswap token (UNI) was the undisputed star of the crypto market. All users who have ever used the decentralized exchange had received at least 400 UNI in an airdrop on Wednesday last week. Investors and traders who did not receive the UNI token stormed the Binance, Coinbase or Huobi exchanges to buy it.
The hype surrounding the UNI token drove the price up to USD 8.59 on Friday. Over the weekend, however, there was a massive sell-off. The UNI price fell yesterday to 4.64 USD. The trading volume for the coin also plummeted, from USD 6 billion on Friday to USD 1.5 billion on Sunday. But while the price of the token is falling, business on Uniswap is better than ever.
Possibly as a result of the increased attention to Uniswap through the UNI token, the capital locked within Uniswap’s smart contracts has increased massively. While according to DeFi Pulse data on September 17th, the day UNI launched, Uniswap was only allocated $748 million, the value is on the way to triple. At the time of writing, Uniswap’s smart contracts included USD 1.94 billion, up 12.94%.
Has the Uniswap (UNI) price bottomed out?
Chart analysts are currently assessing whether the Uniswap (UNI) price has bottomed out after the strong sell-off over the weekend. The renowned analyst Big Cheds stated a few hours ago that UNI has broken a falling trend line and thus the correction could possibly be over.
$UNI (USDT) 1 hour – correction may be over here
Another analyst, Degeneral, pointed out that the UNI price has broken a “falling wedge”. In this chart formation in the context of a pullback, both lines are pointing downwards and approaching each other. The breakout could be another bullish signal for the price to reach a low. Specifically, the analyst explained:
Is $uni going for another leg up? made a 618 retracement into a horizontal level and broke out of the falling wedge. Looks decent here.
However, the Crypto Trading Group pointed to the level at around USD 4.70 and commented on the current price development as follows:
$UNI / USDT. Looking for an entry on LTF. Super hyped coin with incredible volume. A lot of holders likely selling their free coins. Lets see…