Uniswap Price Stays Around $8 Despite SEC Turmoil — What’s Next For UNI?

Key Takeaways

• Uniswap urges SEC to drop proposed “exchange” amendments.
• UNI recovered to $8 after dipping below $7 on July 5.
• Potential rise to $16 if uptrend confirms.

Uniswap Labs, the developer of decentralized exchange Uniswap, has urged the US Securities and Exchange Commission (SEC) to abandon its proposal to amend the definition of “exchange” under the Exchange Act of 1934. 

Following a solid performance through May, the UNI token has struggled to maintain momentum above $12, leading to a decline starting in mid-June. In July, its performance worsened, briefly tumbling below $7 before bouncing back to $8. Will UNI stage a recovery and establish a new uptrend? 

Uniswap VS SEC

Uniswap argues that the SEC’s proposed amendments have an overly broad scope with “no discernible limits” for the public, which could lead to unnecessary litigation and lack of clear guidance. 

The developers contend that the SEC’s focus on amending the definition would waste limited resources, especially in light of the recent Supreme Court decision on Chevron, which reduces courts’ deference to federal agencies in interpreting ambiguous laws.

https://twitter.com/MinarikLaw/status/1810792221593174162

In their arguments submitted on July 9, Uniswap emphasized that the SEC’s proposed changes are unlikely to survive the judicial challenge and that moving forward would stretch the statutory text of the Exchange Act too far. 

They highlighted the need for the SEC to either drop the proposed amendments or reopen the comment period to allow the public to consider the implications of the Chevron decision. Uniswap also noted that the SEC had issued a Wells notice to them in April, signaling potential enforcement action, which they are prepared to contest in court. They criticize the SEC’s legal stance as “weak.”

UNI Price Analysis 

UNI reached its annual peak of $17 on March 5, rising from a low of $5.60 on January 24. This surge likely completed a five-wave impulse that began on October 19 of the previous year at $3.80.

Following this peak, UNI’s price fell by 62%, breaking below its horizontal support to a new low of $6.50 on April 13. During this decline, the price dipped even lower briefly, leaving a significant wick on the daily chart, and returned to the level where the previous upward movement had started.

After establishing support above $6.50, we saw a new uptrend, leading to a breakout above the descending triangle and a high just below $12 on May 26. It attempted to surpass this area on June 4 and 16, but the resistance encountered proved to be stronger, sending it downwards again. 

On July 5, the price spiked below $7 but quickly snapped back above $7.60, closing its daily candle. UNI successfully managed to maintain trading above this level, which could signify its price plateau getting higher as this is a higher low compared to its Apil 13 one. 

If this is the case, we could assume that its previous uptrend in May could have been the first sub-wave of the next five-wave impulse to the upside. That would mean that its July 5 low market is the completion of its second sub-wave, and its third is in development. 

Should this be confirmed, we can anticipate a larger rise leading to the $16 area, where its yearly high is, and later surpassing it to create a new one above $18.