Uniswap – Flat Lines But is $5.5 Within Reach?

The Uniswap price is stable and oscillating within a $1 capped at $2 and $4, respectively. After a firm uptrend in the first half of November, last week’s price action was tepid and bulls faltered. Although the UNI price is down two percent in the last trading week, the token is up four percent on the last day.

Uniswap (UNI) Overview

Depending on the immediate price trajectory, the current consolidation can turn to be either a consolidation or a distribution. A break above $4.2 or Nov 15 high, set the ball rolling for a new Q4 2020 high. On the flip side, losses below $2 may lead to a contraction to almost half of the H1 Nov 2020 trade range.

Overly, there is a contraction in the total value locked (TVL) in DeFi. While the Ethereum price is trading at new 2020 highs, the TVL rose marginally but soon flat-lined. As a dominant DeFi protocol, this could harm the UNI price.

With clear caps at $2 and $4, combined with waning upward momentum—right at the breakout level, the short and medium-term trajectory will depend on the reaction at these minor reaction levels. 

Noticeably, amid the consolidation is even trading volumes suggesting low-level distribution or accumulation. A dump or a rally depends on the price breakout direction as aforementioned.

Uniswap Market Movers

The end of the initial UNI distribution pace saw the TVL in the world’s largest DEX tank. 

There has been no reprieve at the time of writing (Nov 23). Today, there is $1.3 billion worth of assets, a stark difference from those of Nov 14 when the TVL was at $3 billion.

The proposal to slash by half the number of UNI tokens distributed to liquidity providers has support. However, there are subsequent voting stages that must be approved before the proposal is implemented. Once approved, UNI tokens will be distributed for two more months to each of the four covered pools.

Meanwhile, Uniswap’s analytics and the marketplace were integrated into Rotki App and Crypto Watch by Kraken, respectively.

🔥🔥🔥 Beautiful integration of Uniswap marketplace data into @cryptowat_ch by @krakenfx!!! 🦄💜🦑 https://t.co/45PhMEPaIY pic.twitter.com/qTvx5nJ33t

— Uniswap Labs 🦄 (@Uniswap) November 19, 2020

Uniswap (UNI) Price Prediction

The UNI price is steady and firm within an uptrend.

Even though buyers may be in charge, the lack of follow-through and price ranging in the last week after a strong November half suggests bull exhaustion. From the daily chart, the horizontal consolidation and divergence away from the upper BB above the middle BB are bullish. Typically, price contraction below $2 and the 20-day moving average could point to weakness and a possible correction.

Conversely, gains above $4.3 may see the UNI price rally to $5.5, the 161.8 percent Fibonacci extension level of the H1 November 2020 trade range.

In the 4-HR chart, there is a pennant and a bull flag. 

As the UNI price approaches the third half of the ascending triangle, a breakout above the upper resistance trend line and last week’s high of $4 at the back of above-average trading volumes could see the UNI price expand to $4.2 and $5.5 as aforementioned.

Conversely, losses below $3.2 may trigger a sell-off to $2.7, the Fibonacci retracement level of the H1 Nov 2020 trade range.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.