Everyone in the cryptocurrency world is talking about DeFi! The Klondike fever in the world of decentralized finance intensifies. On Wednesday, September 16th, Uniswap launched its governance token UNI.
Uniswap is a decentralized protocol for automated liquidity provision on Ethereum, according to public info on its website.
While last week most of the major cryptocurrencies were moving sideways, Uniswap’s native token, UNI, recorded a very successful debut. Within just a couple of hours, its price increased from less than a dollar to almost eight dollars on most of the biggest crypto exchanges and made many cryptocurrency enthusiasts rich.
The early adopters of the Uniswap protocol received 400 UNI (worth approximately $2,000 as of the time of writing) from an unexpected airdrop. Immediately after the airdrop, a wave of positive stories written by excited users flooded the crypto forums, crypto-related threads in social media platforms, etc. For example, a LeoFinance user with the nickname @atma.love wrote in his account the following:
Jeff Kirdeikis, a well-known cryptocurrency enthusiast and CEO of crypto-related social media platform Uptrennd, posted the following tweet concerning the Uniswap airdrop:
Although the DeFi craze continues, the cumulative cryptocurrency market capitalization is still under pressure. Monday’s market starts with a slight pullback. At the time of writing, according to Coin360.com, one Bitcoin costs €9,203.33 (-0.61%), one Ethereum — €313.05 (-2.77%), and one Litecoin — €39.76 (-2.40%):
Now let’s see what the price charts of the major cryptocurrencies against the euro have to say.
In the daily chart (1D), BTC/EUR is trying to renew the uptrend by rebounding off the support level S1 (approximately €8,700 per one digital coin) — a level equal to the lower line of the Descending Triangle that formed in the summer of 2019:
If the rebound is successful (bullish scenario), then the price of Bitcoin may reach the level of the last local high (approximately €10,000 per one digital coin) very soon.
However, if the bulls aren’t strong enough to resume the uptrend, then the price of Bitcoin may drop again to the support level S1 (neutral scenario).
In the most pessimistic scenario, if the bears regain control over the market, they may sink the price of Bitcoin below the support level S1 and bring it down to the support level S2 (approximately €7,984 per one digital coin).
In our estimation, at the moment, the most likely scenarios are the bullish one and the neutral one.
In the daily time frame (1D), ETH/EUR is attempting to draw an Ascending Channel, which we mentioned in one of our previous analyses:
Although the price of Ethereum is slowly increasing again, we remain quite cautious. Keeping in mind that last week most of the major cryptocurrencies were consolidating, we think that if the market doesn’t receive bullish momentum, then Ethereum won’t be able to outshine the rest of the major tokens, and ETH/EUR may retest the lower line of the Ascending Channel.
Now let’s have a look at the price chart of Uniswap (UNI) — one of the best performers the last week:
As seen in the 1-hour chart (1H) above, UNI/USD skyrocketed immediately after its launch. After that, the price of the token consolidated for a couple of hours in a range between the levels of $2.50 and $3.75. After the consolidation, UNI started to increase again and surpassed the level of $8. Later a correction started and now UNI/USD is declining within a Descending Channel.
We consider the initial consolidation range as a solid support territory, which the bulls will defend fiercely. That’s why if the price of UNI drops to the upper bound of that consolidation range, we will wait for a rebound, and if it happens, we will open a long position. Keeping in mind that we are talking about a trade in the 1-hour time frame, it means that the potential long position will be speculative.
At the moment of writing, UNI/USD is trading at the level of $5.001.
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