Uniswap was among the earliest innovation in DeFi. It came after Bancor and Kyber Network, true, but the protocol has exponentially grown over the last two years. Evolving and seemingly rising from obscurity to being a crypto force–where competition is cut-throat–is no mean feat. But that is what Uniswap is.
It was tempered by crypto fire and freeze of the past cycles. The launch of the UNI governance token and subsequent yield farming drew more interest, building momentum that was further accelerated by the protocol’s continuous development.
A few months after v2, Uniswap activated v3 giving liquidity providers more autonomy, helping boost DeFi’s liquidity in the long haul.
However, the icing will be what lies ahead: The migration to Layer-2.
No doubt, the shift could turn out to be a trigger that supports the main bullish UNI/USDT price prediction being floated around.
As of May 6, UNI is lodged at 12th, surprisingly stable on the last day and paring losses week-to-date versus the greenback.
Given the stellar gains of ETH over the same period, UNI is struggling, down 21 percent
Still, this apparent “struggle” could be a thing of the past if the prognosis of most UNI bulls come to pass and the token blast past resistance.
Uniswap Bulls Passed the Resilience Test
Based on comments on Trading View, UNI/USDT is ripe for another leg up.
Already, the foundation is set for buyers if price action in the daily chart leads.
According to one trader, Invest_XY, the Uniswap prices resilience was tested when the token’s bulls absorbed bear attempts of last week to confirm the bullish breakout pattern.
Following the close above Q1 2021 highs in anticipation of expected volatility after v3, UNI prices rose steadily from around $28, breaking above $40 as buyers sustained prices above this critical buy trigger.
This rejection of bears was a significant test of which UNI passed with flying colors. Therefore, in the coming days, the trader expects UNI prices to clear above key resistances and reach $50 before pushing towards $55—his intermediate buy target.
The problem is, some traders think UNI is ready for triple digits.
Uniswap is Everyone’s Unicorn; UNI/USDT is open for $100
For instance, peacefuljustin, posted a chart claiming the token would reach $50 before doubling to $100. Triggers would be yesterday’s activation of v3 and Ethereum’s planned EIP-1559—of which Uniswap would contribute greatly to the “burning” of ETH.
The analyst describes UNI as “everyone’s favorite unicorn.”
From UNI/USDT price action in the weekly chart, the path to $100 depends on whether the main support trend line of the past seven months would hold.
When EIP-1559 and v3 fundamentals are priced in, the resulting demand would be heightened. Uniswap has burnt through 52 percent of its total supply capped at 1 billion UNI.
With the growth of DeFi and Uniswap—judging from its TVL, network demand would be a big factor. In turn, this would aid in the push higher to new territory and potentially into the top-10.
UNI/USDT will “go vertical”
For yet another trader, Lanmar, the UNI/USDT price is ready to go vertical.
To illustrate his confidence, he shares screen grabs of the UNI/USDT, UNI/BTC, and UNI/ETH of the 6HR time frame.
In all these charts, it is clear that UNI bulls are firmly in control, retesting key resistance trend lines.
For instance, in the UNI/USDT case, the token has broken above the primary resistance level.
On the UNI/BTC Chart, prices are back to Sep 2020 highs.
A breakout could see UNI prices go vertical to new territories.
Meanwhile, UNI is trailing ETH. Nonetheless, prices are trending inside Mar 2021 bull bar—a net positive from an Effort-versus-Results perspective.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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