Uniswap Price Analysis: Uniswap Leads The Rally Of The 3 Million Defi Users In The Crypto Universe

By July 29, 2021DeFi
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  • UNI token chart shows a death crossover of the 50 and 200 EMA in the daily time frame
  • The UNI/BTC pair was trading at 0.0004867 BTC with a gain of 2.53%
  • The 24hr trading volume of UNI token is $429.9 Million
UNI/USD on Tradingview

The UNI token price is still resonating in its descending triangle pattern in the daily time frame, which would eventually provide an excellent trade for the UNI traders. However, the chart shows some unusual behavior of multiple high wicks Doji candles wavering below the descending trendline for the past few days.

Having said that, if we play by the rules of the triangle pattern, the price should be dropping back to the bottom support level after getting rejected from the falling trendline. Therefore, it could be a little unsafe to enter into the coin market because of such choppy movement in the coin market now.

Concerning the EMA’s, the UNI token is trading below the 50, 100, and 200 EMA, indicating a bearish trend formation. In addition, the chart has recently shown a death crossover of the 50-200 EMA, which could lure even more sellers in the token market. As for the 20 EMA is moving below the price and provides some good support to the UNI token price.

The RSI (BULLISH) current value is 54, indicating a bullish sentiment in the price. In addition, the RSI also shows a substantial bullish divergence, indicating the increasing strength of the token bulls.

The UNI Token Crypto Chart In The 4hr Time Frame

UNI/USD on Tradingview

The UNI token shows a short rally carried by an ascending trendline after the price bounced from $15.5. This trendline will be pretty valuable for the UNI traders as it could eventually lead the price to break out from the descending trendline.

However, on the other hand, this trendline breakdown will also provide a great confirmation if the price decides to plunge back to the bottom support.

In addition, The 4hr chart shows remarkable confluence between SR levels and traditional pivot levels, giving traders an extra edge for the UNI token traders.

The MACD indicator (BULLISH) shows both the MACD line and the signal line are moving higher to the neutral zone(0.00), indicating a bullish momentum in the price. However, the indicator also shows a bearish divergence in the line, suggesting a weakness in this bullish momentum.

Uniswap Defi Protocol Was The Main Driver Of DeFi’s Growth To Its 3 Million Users Achievement.

There was a time when the no. of the defi user were only 1 million. However, with the increasing popularity of the crypto universe, this no. now have been increased to 3 million Defi users, Indicating a 160% increase since January 1 of this year.

Furthermore, of the 3,090,721 total crypto addresses that have interacted with top Defi projects, three of the top protocols are either DEXs or DEX aggregators. And this growth has been driven by four main protocols, including Uniswap (2.25 million users), Compound (326.487 users), 1inch exchange (276.254 users), SushiSwap (198,618).

Uniswap As The Main Lead Of The Shows

Uniswap hosts more than 80% of DeFi users. It has a market share that is 63.8% among all DEX platforms. SushiSwap is the closest competitor, with a 9.6% market share.

Uniswap also ranks in the same category as centralized counterparts in FTX or Kraken for 24-hour volume. Moreover, in August 2020, the DEX outpaced Coinbase Pro, one of the most popular exchanges for the same metric. However, these values can change quickly, but the data shows an interesting picture of where crypto traders do most of their business.

Conclusion: From the technical perspective, the overall trend is that the UNI token is still bearish. And as mentioned above, the price is still inside the descending triangle pattern. Therefore, traders looking for a strong directional move in the coin can consider waiting until the pattern gives a breakout from the crucial levels of this pattern.

Support: $17.1

Resistance: $19.7

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