Uniswap is not looking good right now. UNI, the governance token of the decentralized exchange platform bearing the same name, must be able to muster enough energy to regain momentum and hit its target.
Uniswap’s key support levels are $5.7 and $5.2
UNI price can go as high as $7, with a push for $8 also highly possible
An extended bearish run is still possible if breakdown below support marker occurs
According to tracking from Coingecko, at press time, the cryptocurrency is trading at $6.20 and is currently down on intraday, weekly and monthly periods.
Over the last 24 hours, Uniswap went down by 2.8% while on a seven-day period the asset is dealing with 8.2% price decline.
Its year-to-date loss is huge, being down by 76.4% and UNI already lost 86.2% of its all-time high price of $44.92 attained last May 3, 2021.
But despite all of these negative price numbers, investors could be looking at a bull run for the 17th largest cryptocurrency in terms of market capitalization.
How UNI Can Hit The $7 Marker
Analysis from its daily timeframe chart shows the altcoin’s price has incorporated itself into an inverted head and shoulder pattern, putting itself in a good position to start a bullish rally.
Investors need to keep their eyes open for two crucial support levels for Uniswap, $5.7 and $5.2, as they are significant points for buyers to initiate and sustain a price recovery.
With the nature of its current price pattern, UNI could be in a position to make a 10.6% jump and finally hit the $7 level.
There is an even better scenario for Uniswap, as success in buyers’ attempt to sustain the $5.66 support level and push to the $7 marker would mean accelerated surge for the digital asset all the way to $8.
Caution is still advised though, as breakdown below the $5.2 support will wash away all hopes for the aforementioned price rally and will mean extended bearish run for Uniswap.
Uniswap Labs Completes Successful Funding Round
Perhaps one key driving force for the forecasted bull rally for the cryptocurrency is the recently completed funding round of Uniswap Labs.
Motivated by its goal of broadening its offerings, the parent company of the largest decentralized exchange pulled all strings it could and raised $165 million in its Series B fund-raiser.
The round, that pushed the firm’s valuation to $1.6 billion, was led by Polychain Capital and featured loyal supporters such as a16z crypto, SV Angel, Variant and Paradigm.
Uniswap Labs, in recent months, have been very vocal about its plans to add several new offerings which include a wallet system and enabling customers to trade non-fungible tokens (NFTs) to Uniswap from different market places.
The successful funding round will certainly help the company in that department, not to mention aid in pushing UNI price to higher levels before the year ends.
UNI total market cap at $4.67 billion on the daily chart | Featured image from Inc Magazine, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.NewsBTC