Uniswap price has been in a strong bearish trend this week as concerns about cryptocurrencies continued. UNI token dropped to a low of $5.70, which was the lowest level since July 13. It has fallen by more than 40% from the highest level in July of this year. As a result, its market cap has fallen to about $4.5 billion.
Uniswap Protocol is the biggest Decentralized Exchange (DEX) in the world, with a total value locked (TVL) of over $5.5 billion. Most of these funds are locked in the protocol’s Ethereum platform, while the rest are in layer-2 projects like Arbitrum, Polygon, and Optimism.
Uniswap price has dropped in the past few days as investors wait for The Merge. Merge is a process that will transition Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) platform. This transition will then lead to future upgrades that will see it become much faster and cost-effective in the long term.
In a statement, Uniswap said that it would continue supporting The Merge and had no plans to support any forks that come up. Its platform will continue working during this transition process. The statement then made added that developers building on Ethereum will need to change their TWAP oracles and change the replayability for permits.
Uniswap price also pulled back because of the overall hawkish tone by the Fed, which also affected other assets like stocks and commodities. In a statement on Wednesday, Lael Brainard, Fed’s vice president, said that the bank will continue hiking interest rates. Jerome Powell will likely continue to reiterate the statement on Thursday.
UNI price has also fallen because of the performance of cryptocurrencies. With Bitcoin below $20,000, analysts believe that volume in Uniswap will continue falling.
The four-hour chart shows that the UNI price crashed to a low of $3.3370 in June of this year. It then started rising, which saw it reach a high of $9.83 in September. Recently, however, the coin has been on a bearish trend.
The 25-day and 50-day moving averages have made a bearish crossover. Therefore, the coin will likely continue falling as sellers target the next key support level at $5. A move above the resistance at $6.65 will invalidate the bearish view.
This post was last modified on Sep 08, 2022, 09:42 BST 09:42