Uniswap price is up by 3 per cent, extending a bullish trend that has persisted in the markets for the past two days. The new bullish push comes days after it was revealed that the Uniswap foundation would be giving out grants totalling $1.8 million to 14 recipients. The grants will vary in size and will encompass three areas- protocol growth, community growth and governance stewardship.
However, despite Uniswap gaining in the markets for the past two trading sessions and extending the streak to today, it has underperformed in other areas. For instance, in the past 24 hours, the trading volume of Uniswap has dropped by 10 per cent. Its total value locked has also been on a steep decline fo throughout 2022 and now stands at $5.1 billion, an indication of the current bearish trend of the cryptocurrency industry.
Despite the past two trading sessions being aggressively bullish, the long-term trend of Uniswap is still bearish. This month, it is down by 43 per cent, extending the 26 per cent drop it experienced in the month of August.
Therefore, putting into context both the long-term trend and what has been happening in the markets for the past few days, we can conclude that the current price gains are a retracement and not a reversal. In this case, what we have seen in the past two trading sessions and today is a repeat of a bearish flag price action.
Therefore, I expect prices to resume the bearish trend and start breaking the recent price low of $5.1. There is also a high likelihood we might see prices continuing to trend downwards and break out of the $4.6 support level to the downside. I expect the prices to be trading below the $4.5 price level before the end of the month. However, a trade above the $6.5 price level will invalidate my bullish analysis.
This post was last modified on Sep 23, 2022, 15:19 BST 15:19