05 Aug 2021 | ZebPay Trade-Desk
Uniswap (UNI) has been a key beneficiary of the rally that has taken place in the marketplace over the past 2 weeks or so. So far, uniswap has been the highest fee-generating DEFI protocols ever with approximately $1bn in lifetime fees have generated and distributed among the protocol and its users. Even as the asset fell by close to 70% from its highs during the mid-May sell-off, Uniswap volumes have shown 40x year over year growth, and around 900x since January 2020.
At the time of writing, just above $6bn is locked into the pool, making it one of the largest DeFi liquidity pools in the market. The moving averages completed a bullish crossover and RSI suggests that UNI is closing in on the overbought zone, implying that buyers are currently dominating.
Uniswap after taking support around the previous low of $13.9 surged almost by 65% from $14.02 to $23.22. Post this rally, the asset is facing stiff resistance around $23.50 and has made a ‘Spinning Top’ candle in an uptrend indicating indecision.
Technically, uniswap has made a ‘Double Bottom’ or a ‘W’ pattern with the neckline of $23.5. If the breakout or close occurs above the neckline with good volumes then it may further rally up to the next resistance which is at $30.
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