Uniswap price is down by 8 per cent in today’s trading session. The aggressive downtrend is a continuation of the past few days, weeks and months that Uniswap has been on a bearish trend.
Since the start of 2022, Uniswap has lost 70 per cent of its value. This is in line with most cryptocurrencies, whose prices have dropped by more than 40 per cent this year. However, unlike other cryptocurrencies, Uniswap is one of the most popular platforms and cryptocurrencies in existence. Today, it ranks as the 24th largest cryptocurrency with a market capitalization of $3.5 billion.
Uniswap is also one of the largest automated market makers and a pioneer in the industry. Automakers are able to offer cryptocurrency enthusiasts multiple pairs to trade. The prices of these pairs are set using special calculations. Once a price is set, the trades are executed using smart contracts. This is achieved through the use of liquidity pools, where the funds are drawn during the trading process.
Uniswap is also both a decentralized exchange and a cryptocurrency. The decentralization exchange of Uniswap allows them to use peer-to-peer methods to exchange cryptocurrency pairs without the use of a centralized system. The Uniswap governing token is its cryptocurrency. The cryptocurrency’s success is mostly tied to the platform’s success and since the launch of the project, price gains have been partly driven by the growth of the Uniswap platform.
For months now, Uniswap has been trading within a descending channel. In today’s trading session, the prices have dropped by more than 8 per cent. This is despite the prices being in a four consecutive day sideways market. The prices have also recently touched the upper trend line of the descending channel.
Therefore, using the chart below, I expect the prices to continue dropping, with a high likelihood of hitting the lower trend line of the channel. It is highly likely that the prices will fall from the current price of $5 and trade below the $4 price level.
However, if the prices trade above $5.5 by the end of today’s trading session, then my analysis will be invalidated. It will also mean the prices are likely to continue trading sideways for the foreseeable future.
This post was last modified on %s = human-readable time difference 18:24