After correcting in the first half of December, the Uniswap price is maintaining its uptrend.
At the time of writing, the token is trading at $3.8. Buyers are now aiming at recent highs of $4.5 in a trend continuation pattern.
Presently, the UNI price is up 17 percent in the last week of trading, and stable on the last day.
A shot in the arm for expectant bulls is the resurgence of trading volumes following the confirmation of the breakout bar above $3.3.
Uniswap (UNI) Price Overview
The path of least resistance in the medium term is northwards.
It follows a dip in the first half of December, following an even deeper correction in the better part of October that forced prices back to below $2.
The rejuvenation of bulls in November, reversing losses, spilled over to December. At the current pace, buyers may clear immediate resistances.
However, the probability of even more gains in days ahead is on the cards.
As long as prices trade above supports marked by the middle BB and $3.3—a support level from mid-November to the first week of December, bulls may turn out triumphant.
Still, the reaction at $4.5—to the upside, and $3.3—to the downside, will determine the price trajectory in the tail-end of 2020.
A close above $4.5 opens the UNI/USD pair to $5.5 and even September 2020 highs of $15.
Uniswap (UNI) Market Movers
Undoubtedly, Uniswap is the largest Ethereum-based DEX. It commands a huge following, making liquid tokens that would otherwise be illiquid.
They also liberalized the space, making it possible for tokens of potent but community-funded projects to gain traction without necessarily coughing millions in listing fees at CEXes.
According to Hayden Adams, the founder, Uniswap recently attracted over $50 billion in cumulative weekly trading volumes printing a new high.
🤯 Looks like @UniswapProtocol passed $50b in all time volume last week.
🧦 This is split across 26,000 unique trading pairs
🚀 Just need to do this 19 more times to hit 1 trillion pic.twitter.com/P4eQTnX4Aq
— hayden.eth 🦄 (@haydenzadams) December 14, 2020
In response, its governance token, UNI, is potent at a spot rate. It can register even more gains as long as the protocol finds utility.
According to DeFi Trackers, Uniswap’s liquidity is stable—at around $1.42 billion, after the bleed of late November when the initial UNI distribution ended.
With a proposal of another distribution likely to pass, not only will total assets under management rise but UNI prices could rally above $5.
Uniswap (UNI) Price Prediction
At the time of writing (Dec 18), the Uniswap price is stable in the last 24 hours.
After reversing from around the 50 and 61.8 percent Fibonacci retracement level of the November trade range, prices are now trading above $3.3, overcoming the resistance—now support.
The breakout bar is notably with high trading volumes.
Therefore, every low—for aggressive traders, is a buying opportunity. Their first targets should be Dec 2 high at $4.1 and Nov 2020 high of $4.5, respectively.
Risk-averse traders, on the other hand, can wait for a convincing break above $4.5. Accompanying this ought to be high trading volumes ideally exceeding Nov 7 (Binance data), before buying the dips. Their first buy target will be $6, the 161.8 percent Fibonacci extension level of the Nov 2020 trade range.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research
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