Uniswap’s UNI token continues to climb strongly to the upside. A few hours ago a new all-time high of $ 45 was reached, and if you want to know where the price of this token is heading next, check out this analysis.
At the time of this writing, UNI is trading at $ 43.39, accumulating a gain of 2.91% in the last 24 hours and 21.68% in the last 7 days.
Uniswap V3 update boosts UNI token
In addition to the general positivism in the market, one of the most important catalysts behind the recent rally is the upcoming update to the Uniswap platform.
The launch will take place on May 5, and the most important features of this update include concentrated liquidity, flexible rates and rank orders.
The most relevant, concentrated liquidity, improves the space in the liquidity pools, since it allows LPs to see more rates in their price range.
With the V3 traders can select a range in which they want to allocate their assets and earn fees. According to Uniswap, this is an extremely valuable feature, as the maximum capital efficiency could be 4,000x in a price range of 0.10%.
Even with the update, the problem of high rates will continue to exist. However, Uniswap indicates that it will be solved with the introduction of Optimism, an L2 platform that will work alongside Ethereum.
With better conditions for liquidity providers, the DeFi Uniswap protocol will continue to attract more capital, and as a direct consequence, a greater demand for UNI tokens.
UNI technical analysis
Since the announcement of the launch, the price of the platform token has been gradually climbing upwards. Thanks to this, it recently managed to break the most relevant resistance, located at $ 38.16.
UNI has managed to maintain over this resistance, and yesterday after that new historical maximum, an attempt to resume the trend was made; however, we are seeing the bulls a bit exhausted.
That higher low around $ 40 may have picked up enough demand to start a new momentum, but we don’t see much determination from buyers at the moment.
UNI Forecast, May 2021
When we analyze the weekly chart of Uniswap (UNI) we realize that the price is developing momentum from the medium-term trend.
This bullish process recently reached the first target of -27%, obtained by using the Fibonacci retracement tool.
The momentum can be extended further and reach $ 51.54 (-61.8%). However, we may see minor corrections first, observable from intra-day time frames.
If the support at $ 34.26 is not lost, that goal may be reached in the very near future.
For us to think about selling, we should first see the break of the support at $ 27.86, an unlikely scenario currently.
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