Is Uniswap (UNI) going up or down? Here’s my price prediction for June
Uniswap UNI/USD price has skyrocketed since the beginning of the year and reached a record high above $45 on 03rd May. Since then, the price has collapsed, daily trading volume has weakened, and the risk of further declines is probably not over.
Fundamental analysis: Uniswap released the third version of its software this month
Uniswap is a decentralized protocol for automated liquidity provision on Ethereum that does not require intermediaries or custodians to facilitate trading. This protocol was created in 2018 by Hayden Adams, but Vitalik Buterin, the Ethereum co-founder, first described the technology that inspired its implementation.
Uniswap is basically a protocol for trading currencies and a very successful project that is part of the Decentralized Finance (DeFi) movement. Uniswap monthly trading volume reached $20 billion in the first month of 2021, clearly demonstrating the sector’s exponential growth.
Uniswap price has skyrocketed since the beginning of the year and reached a record high above $45 on 03rd May. Since then, the price has collapsed, daily trading volume has weakened, but the positive news is that Uniswap released the third version of its software this month.
The third version of Uniswap software allows sophisticated market makers to lock their deposits in within the band, and it quickly became the most popular decentralized exchange on Ethereum. This improves efficiency for traders because the previous versions could be knocked out of line with the market by large trades and wasted liquidity.
“There was sort of a lot of speculation when we first announced v3 because it was much more complex and liquidity isn’t all identical. There were some open-ended questions from people as well; would it be possible? And the answer is yes, it’s completely possible,” said Hayden Adams.
Uniswap is a very promising project, and the price of this cryptocurrency could advance again at levels that we saw at the beginning of this month. This will certainly not happen in the upcoming weeks or even months, and traders should have in mind that if the price of Bitcoin falls below the $30000 support, that will negatively influence Uniswap.
Technical analysis: Uniswap could weaken even more in the ongoing bear market
Data source: tradingview.com
Uniswap could weaken even more in the ongoing bear market, and if the price falls once again below $15, the next price target could be around $10 or even below. On the other side, if the price jumps above $30, it would be a strong “buy” signal, and we have the open way to the $40 resistance level.
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Uniswap extended its correction from the record highs above $45, registered on 03rd May, and the price of this cryptocurrency can weaken even more in the upcoming days. It is also important to mention that the price of Uniswap is in correlation with the price of Bitcoin, and investors in this cryptocurrency should also have Bitcoin on their “watch list.”