While the crypto market consolidates, the Uniswap token saw a sharp rise in its prices. Over the past week, UNI price saw a massive 20% price increase while other cryptocurrencies struggled to consolidate. Why is Uniswap up? Is Uniswap a good buy today? Let’s analyze UNI in this Uniswap price prediction article.
What is Uniswap Crypto?
Uniswap is a decentralized exchange (aka DEX) based on the Ethereum blockchain that also functions as a coin. While its token holders run it, its Blockchain is open source and available for everyone to read and edit. It functions as a DEX and gives users access to its platform for peer-to-peer market making. These transactions don’t need a broker or a third party, like any conventional DEX transaction. It is less expensive to run and utilize for users because of the absence of this interference. The platform’s use of an opening numerical statement is one of its distinctive features. This enables buyers and sellers to trade assets without having to decide on fees and other factors that can impede them. Any ERC-20 token may now be exchanged on the platform.
What sets Uniswap from other DEXs?
Uniswap utilizes smart contracts to perform its Automated Market Maker (AMM) duties. Additionally, Uniswap employs the Constant Product Market Maker (CPMM) as its evaluation model in contrast to other DEXs. The CPMM is an AMM variant that runs without an order book. The platform is extremely effective at trading with smart contracts while avoiding liquidity problems. The Uniswap platform is similarly permissionless and unrestricted for everyone. As a decentralized protocol, Uniswap receives support from Paradigm Hedge Fund even if it loses money. The creator does not receive any compensation from the platform; all fees go to liquidity providers. UNI is the platform’s native and utility token, and its owners are in charge of running it.
Why is Uniswap UP? UNI Price UP 20%
In the past 7 days, UNI prices shot up by around 20%. This happened while the entire crypto market struggled to make any green movement. In fact, if we look at figure 1 below, we can see how UNI prices were on a strong uptrend from mid-June till mid-August 2022. However, prices adjusted lower and retraced towards the 50% retracement area and broke it lower. In the past 7 days, UNI simply went back towards this 50% retracement area and reached the important price of $6.5.
In fact, the $6.5 price area is an important milestone for Uniswap. This is where UNI prices consolidated before determining their next move. In figure 2 below, we show why this brief previous consolidation around that price area. Where will UNI prices go next? Keep reading!
Uniswap Price Prediction – Where will UNI reach?
Now that we saw UNI prices pump, we should expect a brief adjustment. This is especially because of the $6.5 price area, which might work as a resistance. Once this happens, the next targets for UNI will be the following:
- $7.3
- $8.2
- $9.2
In figure 2 below, we can spot a reversed head and shoulder formation, which should confirm an upcoming uptrend for UNI.
