• UNI has retreated to the lower boundary of the short-term flag formation.
  • The community of the DeFi project is voting on the grants program worth $750,000 per quarter.

UNI, the token of one of the most popular DeFi protocols, may be ready for a bullish breakthrough. At the time of writing, UNI/USD is changing hands at $3.82. The coin has recovered from the November 26 low of $3.0, however, it is still below the recent top hit at $4.5.

UNI is in a danger zone

On the intraday chart, UNI is trading around the support level created by the lower boundary of the bearish flag formation around $3.7. This continuation pattern is usually characterized by a short-term counter-trend movement. If the price breaks below the channel support, the sell-off may be violent and result in at least a 28% decline with the estimated target of $2.7.  

UNI's 1-hour chart

UNI's 1-hour chart

Meanwhile, In/Out of the Money Around Price (IOMAP) model reveals that UNI sits on top of strong support. Over 3,000 addresses bought 72 billion UNI between $3.6-$3.7, making this area a hard nut to crack for the bears. This barrier has the potential to absorb the selling pressure and trigger a new rally. However, a move below may have catastrophic consequences for UNI price as there are no significant support levels below this area.

UNI's In/Out of the Money Around Price" (IOMAP)

UNI's In/Out of the Money Around Price" (IOMAP)

On the other hand, the local resistance comes at $4. The IOMAP chart shows that 3,500 addresses purchased over 18 million tokens on approach to this area. Once it is out of the way, the upside is likely to gain traction with the next focus on a channel resistance of $4.3. A sustainable move higher is needed to invalidate the bearish scenario and bring UNI recovery back on track.

UNI unveils grants program MVP

From the fundamental point of view, UNI may gain support from the news that the DeFi protocol looks into the idea of creating a grant program. According to the proposal submitted by a cryptocurrency investor Jesse Walden, the funding program will help speed up its ecosystem development. 

The proposed quarterly budget is $750,000. The amount may be changed every six years. At the initial stages, the platform may start sponsoring hackathons and then move on to financing core protocol development. 

We propose the program start with an initial cap of $750K per quarter and a limit of 2 quarters before renewal. This sum we feel is appropriate for an MVP relative to the size of the treasury that UNI token holders are entrusted with allocating, the proposal says.

The grants will be financed from UNI Community Treasury and managed by six community members – one lead and five reviewers – re-elected every six months.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

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.

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