UniSwap Price Forecast: UNI falling in tandem with DEXs' volume aiming for $2.5


  • UniSwap's exchange volume tanks by 62% from September's peak of $16.4 billion.
  • UNI/USD uptrend remains unsupported, calling for a reversal in the near term.

UniSwap lock-step trading over the last two weeks has generally sustained a negative gradient. Before the retracement commenced, the decentralized exchange token recovered by more than 45% from the dip to $2.5 to levels slightly above $3.5.

UniSwap's initial governance vote flops massively

UniSwap is an on-chain governance token that allows the community to decide on the decentralized platform's critical matters. However, the first governance vote held recently did not achieve the set threshold.

Intriguingly, 98% of all the votes cast supported the change that had been proposed. Unfortunately, the votes cast failed to meet the 40 million threshold needed by approximately 400,000.

At the final tally, votes cast in support of the proposal to bring down the token threshold needed to pass proposals on the platform stood at roughly 39.5 million against a mere 697,000. If the vote has sailed through, the required would have slashed by a third and the voted needed will reduce to 30 million.

UniSwap fails to build momentum

Following a recent bounce from the short term support at $2.8, UNI/USD lost steam within a whisker of the 50 Simple Moving Average (SMA) in the 4-hour timeframe. Also adding weight to the rejection were the 100 SMA and the descending trendline.

UNI is pivotal at $3 amid struggle in the bullish camp to refocus the asset back into the upward trajectory. However, the above hurdles are unlikely to give UNI smooth sailing. Therefore, a breakdown is likely to fall before a significant recovery comes into the picture.

UNI/USD 4-hour chart

UNI/USD price chart

IntoTheBlock IOMAP model shows the absence of strong support zones except for demand between $2.86 and $2.9. Here, roughly 1,400 addresses previously bought approximately 6.4 million UNI.

On the upside, the strong resistance zones ahead of UNI add credence to the bearish outlook. The model highlights $3.2 and $3.3 as the most substantial hurdle. Previously, about 2,600 addresses purchased 39.3 million UNI.

UniSwap IOMAP chart

UNI IOMAP model

UniSwap exchange corrects by 62% from the peak

November is around the corner, and so is the end of the year. Decentralized exchanges (DEXs) like UniSwap have been gaining momentum, especially with centralized exchanges like OKEx being in hot soup over users' funds' safety.

UniSwap's volume surged to $15.4 billion in September (highest since its inception). At the time of writing, the volume has dropped to $6.2 billion, representing a 62% decline. The decrease has been observed across all DEXs according to data by The Block.

It remains uncertain whether DEXs will make an upturn in terms of volume, considering we have only 11 days before the end of October. However, any significant rise in the exchange volume is likely to pull tokens like UNI upwards.

Looking at the other side of the fence

It is worth mentioning that UNI's bearish outlook will be invalidated if the resistances at the 50 SMA, the 100 SMA and the descending trendline are pushed into the rearview. Besides, if the pattern on the 4-hour confirms a falling wedge, a reversal will come into the picture, elevating the crypto asset to $3.6.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP