Uniswap price went parabolic in the overnight session after a sign of confidence from investors about the platform. UNI surged to a high of $6.5, which was the highest point since October 10 of this year. It has surged by more than 20% from its lowest level this year. Other DeFi tokens like SushiSwap and dYdX also surged.
Uniswap price surged hard after the platform’s parent company, Uniswap Labs, raised fresh funds from investors. The company raised $165 million at a valuation of over $1.65 billion. This makes it one of the most valuable projects in the DeFi space. Most of these funds came from Polychain Capital, a company that has invested in several other crypto projects.
It seems like Polychain is buying the dip since the company’s business has struggled recently due to th crash of digital coins These days, the platform is processsing less than $1 billion a day. It still has a substantial market share in the industry since it processes about 64% of all volume in the DEX industry.
Uniswap hopes to use these funds to grow its business by introducing new products. For example, it plans to launch NFT trading in its platform in the footsteps of PancakeSwap. In addition, it is working to boost its ecosystem by providin $60 million to developers in the ecosystem. The developers are also working to bring the app to mobile platforms.
The hourly chart shows that the UNI price went parabolic after raising the new funds. This bounce back happened after the coin reached a low of $5.3 during the crypto sell-off. The coin’s rally is supported by the Supertrend indicator and has moved slightly above the 25-day and 50-day moving averages. At the same time, the Relative Strength Index (RSI) has moved slightly above the overbought level.
Therefore, I suspect that the coin will continue rising as buyers target the next key level at $7, which is about 8.75% above the current level. A drop below the support at $6.17 will invalidate the bullish view.
This post was last modified on Oct 14, 2022, 05:20 BST 05:20