Uniswap (UNI) coin has embarked on an uptrend since the beginning of the bull run. The cryptocurrency established its all-time high at $33. However, the price of Uniswap is currently suffering from some major pullbacks. As of this writing, Uniswap stands at $27. The price has decreased in the past 24 hours by 13% while the daily trading volume has gone down by 33% – effectively showing that the market for the cryptocurrency is in correction.
Uniswap is ranked at 8th by Coinmarketcap in terms of market capitalization. The market cap of the cryptocurrency stands at $14,268,119,577 which also decreased by around 13%. Uniswap has a total supply of 1 billion tokens while the coins in circulation are at 52 million.
What is Uniswap?
Uniswap is a decentralized trading protocol which facilitates the transactions of cryptocurrencies by using smart contracts on the Ethereum block chain. The decentralized exchange makes use of automated liquidity protocol. Uniswap is an open source project and is not profit-driven like centralized exchanges which means cryptocurrencies can be listed on the decentralized exchange (DEX) for free.
Uniswap has shot up in value because of the recent surge in the decentralized finance sphere. With development being made everywhere to boost up decentralized finance, decentralized exchanges like Uniswap are gaining in value.
The market sentiment for the cryptocurrency has turned bearish with most of the technical indicators giving out a sell signal. A trader has identified a potential head and shoulder formation by Uniswap. The H&S formation is bearish in nature and indicates towards sustained bearish momentum in the coming days. Per the trader’s analysis, Uniswap has entered a downward trending channel and is testing n ascending support line. If Uniswap is able to hold the support line then the current corrections are only minor and Uniswap will resume its upward trend. However, if the coin rejects the support level then the H&S formation will be validated and Uniswap will enter a bear zone.
Will the price reverse?
Currently, under strong bearish momentum, the future outlook for Uniswap cryptocurrency appears to be gloomy. But the decenralised exchange revealed details of a much-awaited network upgrade which may cause a reversal of the price. The V3 update is scheduled for May 5th, 2021. The upgrade is set to increase the efficiency and flexibility of the network.
The Uniswap network has been facing Gas issues. A huge chunk of the transaction costs on Ethereum block chain is attributed to Uniswap. The V3 upgrade is designed to solve this problem through the launch of a Layer 2 scaling solution. Apart from this, the upgrade also has many other features that have the potential to help Uniswap reach the moon.