The price of Uniswap UNI / USD has risen since the beginning of the year and reached a record high above $ 45 on May 3. Since then, the price has collapsed, daily trading volume has weakened, and the risk of further declines is probably not over.
Fundamental analysis: Uniswap released the third version of its software this month
Uniswap is a decentralized protocol for the provision of automated liquidity in Ethereum that does not require intermediaries or custodians to facilitate trading. This protocol was created in 2018 by Hayden Adams, but Ethereum co-founder Vitalik Buterin first described the technology that inspired its implementation.
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Uniswap is basically a protocol for currency trading and a very successful project that is part of the Decentralized Finance (DeFi) movement. Uniswap’s monthly trading volume reached $ 20 billion in the first month of 2021, clearly demonstrating the exponential growth of the sector.
Uniswap’s price has risen since the beginning of the year and hit a record high above $ 45 on May 3. Since then, the price has collapsed, the daily trading volume has weakened, but the positive news is that Uniswap released the third version of its software this month.
The third version of the Uniswap software allows sophisticated market makers to lock their deposits within the band, and it quickly became the most popular decentralized exchange on Ethereum. This improves efficiency for traders because older versions could be out of line with the market due to large trades and wasted liquidity.
“There was a lot of speculation when we first announced v3 because it was much more complex and the liquidity is not entirely identical. There were also some open questions from people; Would it be possible? And the answer is yes, it is entirely possible, ”said Hayden Adams.
Uniswap is a very promising project, and the price of this cryptocurrency could rise again to levels we saw earlier this month. This will certainly not happen in the next few weeks or even months, and traders should be aware that if the price of Bitcoin falls below the $ 30,000 support, that will negatively influence Uniswap.
Technical analysis: Uniswap could weaken further in the current bear market
Data source: tradingview.com
Uniswap could weaken further in the ongoing bear market, and if the price once again falls below $ 15, the next price target could be around $ 10 or even below. On the other hand, if the price jumps above $ 30, it would be a strong “buy” signal, and we have a clear path towards the $ 40 resistance level.
Resume
Uniswap extended its correction from the all-time highs above $ 45, recorded on May 3, and the price of this cryptocurrency may weaken further in the coming days. It is also important to mention that the price of Uniswap is correlated with the price of Bitcoin, and investors in this cryptocurrency should also have Bitcoin on their ‘watch list’.
