The Uniswap price has staged a major recovery as the demand for Decentralized Finance (DeFi) has bounced back. UNI is trading at $24.40, which is 86% above its lowest level during the weekend. It has a market capitalization of more than $14 billion, making it the biggest DeFi token in the world. Other DeFi projects like Maker and Aave prices have also rebounded.
What happened: Like the rest of the cryptocurrencies industry, the DeFi sector struggled last week. Indeed, the total value locked (TVL) of all projects tracked by DeFi Pulse declined from about $90 billion as investors ran for their dear life. However, the TVL in most DeFi projects has jumped in the past few trading sessions.
For example, Maker’s TVL has jumped by more than 21% while that of Aave, Compound, and Polygon have jumped by more than 10%. This, in turn, has helped push their traded tokens sharply higher. Indeed, tokens like Maker, Polygon, and Compound have risen by more than 50% from their lowest level last week.So, what next for the Uniswap token?
The four-hour chart shows that the Uniswap price has made an excellent recovery from last week’s low of $13. The currency has successfully moved to the 61.8% Fibonacci retracement level, where it is currently at.
The currency has also moved above the 50-day exponential moving average, which is a sign that bulls are getting energized. It has also formed what looks like a V-shape pattern.
Therefore, in my view, Uniswap price will keep rising as bulls target the 50% Fibonacci retracement level at $28.55. However, we can’t rule out another retest of the 78.6% retracement level at $20.
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