- 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
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
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
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.