Despite a 35% drop in Uniswap’s price from Q1 2021 peaks, the number of UNI token holders has steadily increased in the past two days, according to on-chain data from Etherscan. As of 26 May, there were over 370,100 UNI holders and the price of UNI has remained relatively stable but high. The release of the non-custodial Uniswap Wallet, which allows users to buy and sell cryptocurrencies, could drive demand for the decentralised exchange, and a proposal to launch Uniswap on Coinbase’s Base could further support future token prices.
This article originally appeared on www.newsbtc.com
Uniswap, the decentralized exchange protocol, saw its native token, UNI, experience a bear run in the past few weeks. However, many analysts believe that the bearish trend has come to an end, and UNI is about to embark on a bullish run.
One particular signal that has caught many traders’ attention is the formation of a bullish chart pattern known as a “falling wedge.” This pattern is formed when the asset’s price is experiencing a downward trend, but the decline is slow compared to the decline in trading volume.
As the price continues to fall, the range in which it moves gets narrower, forming a wedge shape. At the same time, the trading volume decreases, indicating a decline in selling pressure and a possible reversal in trend.
The falling wedge pattern is significant because, historically, it has been a reliable signal of an impending bullish breakout. As the price approaches the tip of the wedge, it typically experiences a surge in buying volume, leading to a breakout and a trend reversal.
The formation of a falling wedge pattern for UNI suggests that the bearish trend is almost over, and a bullish trend is about to begin. However, this signal should not be taken alone, as there are other factors that could influence UNI’s price movement.
One of the critical factors that could impact UNI’s price is the broader cryptocurrency market. If the market experiences a significant selloff, UNI’s price could face additional bearish pressure, regardless of the falling wedge signal.
Overall, the formation of a falling wedge pattern for UNI is a positive signal that suggests the bearish run may soon come to an end. However, traders and investors should always exercise caution and conduct their due diligence before making any investment decisions.
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