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Uniswap Price Might Be Poised For Rally: DeFi Season On The Way?

Last Updated 7 days ago
Nikola Lazic
Last Updated 7 days ago
By Nikola Lazic
Verified by Peter Henn

Unis Key Takeaways

  • Uniswap reaches $4 billion in mobile swaps.
  • UNI price struggles post-peak, but hints at a recovery.
  • Uniswap is poised to integrate Layer 3 assets.

Uniswap has achieved significant milestones in decentralized trading, reaching $4 billion in swaps through its mobile app. This volume, although modest compared to major centralized exchanges, marks a significant contribution to both crypto and DeFi.

Despite this, the price of its UNI token remains below $7. From its March peak of $17, we saw a 65% decrease to a low of $6 on April 13. Since then, UNI has struggled, with its last recover to $8.50 a short-lived one. 

Uniswap To Support Layer 3

A recent hint from Uniswap suggests it may soon support Layer 3 (L3) assets, typically associated with re-staking tokens or assets backed by collateralized ETH. These L3 protocols, still mainly in development, are expected to introduce a new wave of tokenomics and decentralized complexity. 

Uniswap is positioned to integrate these assets, potentially starting with protocols like Layer3XYZ. This aims to consolidate various L3 rewards into a single native token.

Despite the slower pace of the current DeFi season compared to 2021, Uniswap remains a dominant force in the DEX market. It holds more than $5.22 billion in value locked, according to DefiLlama data . It also manages around $1.32 billion daily volumes, with significant activity on the Ethereum-based Uniswap V3.

Uniswap (UNI) Price Analysis 

UNI reached its yearly high of $17 on March 5, rising from a low of $5.60 on January 24. This peak likely marked the conclusion of a five-wave impulse that began on October 19 2023, when UNI was trading at $3.80.

daily chart
UNIUSD Coinbase | Credit: Nikola Lazic/Tradingview

Subsequently, UNI experienced a 62% decline, dropping below its horizontal support to find new support at $6.50 on April 13. During this downturn, the price briefly dipped further. This left a noticeable wick on the daily chart, returning to the level where the last upward movement started.

After hitting the 0.786 Fibonacci retracement level, UNI staged a 26% recovery to $8.3 on April 22. The daily chart’s Relative Strength Index indicated oversold conditions. This suggested a potential price bottom, similar to previous instances at these levels. 

Since April 13, we have seen a bullish divergence, with the price declining while the RSI is going up. This could hint at a potential reversal. Therefore, if April 13 marked the end of UNI’s corrective phase, it could mean the start of a new and potentially more substantial rise. 

However, additional confirmation is needed to support this assumption. The first one will come as a breakout above the descending trendline from April 22 high. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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