Uniswap Price Analysis: Amid the renewed recovery sentiment in the crypto market, the Uniswap price sharply rebounded from the $6.6 support, developing a double-bottom pattern to bolster higher recovery.
HIGHLIGHTS
The formation of a double bottom pattern indicates the increasing buying interest from investors at a particular low bolstering the formation of a local bottom.
The $8.375 level accompanied by a 200-day EMA slope creates a high supply region for buyers.
The 24-hour trading volume in the Uniswap token is $146.2 Million, indicating a 20% gain.
Uniswap Price Analysis: The Bitcoin price upswing above $63000 on Saturday accelerated the recovery sentiment in the crypto market and uplifted several altcoins to double-digit gains. The resurgence of buying pressure bolstered the Uniswap token to rebound from $6.6 support, its second reversal within three weeks. An analysis of the daily chart shows this upswing as the formation of a double-bottom pattern indicating the potential for a higher rally in the near future.
UNI Rebounds as Uniswap Foundation Reveals Strong Financial Footing
UNI, the native cryptocurrency of decentralized trading protocol Uniswap entered an aggressive correction in early March as the price peaked at the $17.06 mark. The bearish turnaround tumbled the asset value by 65% to hit a low of $5.9 before reverting above $6.6 support.
The support mentioned earlier, coupled with a 78.6% Fibonacci retracement level and an ascending support trendline, has helped the UNI price establish a local bottom.
Moreover, in a recent update highlighted by Wu Blockchain, the Uniswap Foundation disclosed its annual operational status as of December 31, 2023. The foundation reported holding assets totaling $45.26 million, comprised of US dollars and stablecoins, alongside 780,000 UNI tokens. The allocated USD cash and stablecoins are earmarked for grants and operational activities, while the UNI tokens are designated for employee token rewards. Furthermore, the foundation plans to disburse $30 million in the years 2024 and 2025.
The Uniswap Foundation released its annual operating status as of December 31, 2023, holding 45.26 million US dollars and stablecoins and 780,000 UNI. USD cash and stablecoins will be used for grants and operational activities, and UNI will be used for employee token rewards. $30…
— Wu Blockchain (@WuBlockchain) May 4, 2024
The disclosure may have a positive impact on UNI’s price, as it highlights Uniswap’s robust financial health and commitment to rewarding its employees with token incentives.
On May 1st, the UNI price rebounded from $6.6 support and jumped 16.5% to currently trade at $7.58 mark. The formation of the double bottom pattern should asset the Uniswap price to surge 10% and challenge the neckline resistance at $8.375. A potential breakout will accelerate the current buying momentum and set the altcoin to target the $10.3 mark.
Technical Indicator
Exponential Moving Average: A bearish crossover between the 50-and-100-day EMA slope could intensify the selling pressure on the UNI token and prolong a sideways action.
Relative Strength Index: The notable higher lows in the daily RSI slope as it surged from the oversold region to 41% indicate the rising buying pressure the asset is witnessing at the $6.6 floor.
