Uniswap doesn’t look good now. UNI, the governance code for the decentralized exchange platform of the same name, must be able to muster enough energy to regain momentum and achieve its goal.
- Uniswap key support levels are $5.7 and $5.2
- UNI price can go up to $7, with possibility to pay for $8 too
- An extended downtrend can still occur if the breakdown occurs below the support mark
According to the tracking from KoenigkuAt the time of publication, the cryptocurrency is trading at $6.20 and is currently low on the daily, weekly and monthly periods.
In the past 24 hours, Uniswap is down 2.8% while in a seven-day period, the asset is dealing with an 8.2% price drop.
Its year-to-date loss is huge, as it is down 76.4% and UNI has already lost 86.2% from its all-time high of $44.92 achieved on May 3, 2021.
But despite all these negative price numbers, investors could be looking at an uptrend for 17The tenth The largest cryptocurrency by market capitalization.
How can UNI reach the $7 mark
Analysis from the daily time frame chart shows that the price of the altcoin has integrated itself into an inverted head and shoulder pattern, positioning itself well to start a bullish rally.
Investors need to keep their eyes open for the two main levels of support for Uniswap, $5.7 and $5.2, as they are important points for buyers to initiate and sustain price recovery.
Given the nature of the current price pattern, UNI could be in a position to make a 10.6% jump and finally reach the $7 level.
There is a better scenario for Uniswap, where the successful attempt by buyers to maintain the $5.66 support level and push to the $7 mark means an accelerated increase of the digital asset all the way to $8.
Caution is still required, as a break below the $5.2 support will remove all hopes for the aforementioned price rally and will mean a continuation of Uniswap’s downtrend.
Uniswap Labs completes successful funding round
Perhaps one of the main driving forces for the expected bullish rally of the cryptocurrency is the recently completed funding round of Uniswap Labs.
Driven by its goal of expanding its offering, the parent company of the largest decentralized exchange has pulled all the chains it could and raised $165 million in a Series B fundraising campaign.
The round, which pushed the company’s valuation to $1.6 billion, was led by Polychain Capital and included loyal supporters such as a16z crypto, SV Angel, Variant and Paradigm.
Uniswap Labs has, in recent months, been very vocal about its plans to add several new offerings that include a wallet system and enable customers to trade non-fungible tokens (NFTs) to Uniswap from various markets.
The successful funding round will certainly help the company in this department, not to mention help push UNI’s price to even higher levels before the end of the year.
UNI total market cap at $4.67 billion on the daily chart | Featured image from Inc Magazine, Chart: TradingView.com
Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.