Will Uniswap break over the $31 resistance level?

Uniswap, the world’s most popular decentralized exchange (DEX) is witnessing unprecedented growth, with $4.8 billion in total liquidity now on the platform2. However lately, the price of Uniswap crypto currency has not moved over the resistence level around $31. Uniswap crypto previously had a significant surge in April-May. During that time, its price increased by more than 120 percent on the charts to all time high of $44.97.

Uniswap (UNI) describes itself as a “decentralized crypto exchange.” Investors may utilize Uniswap to exchange one crypto asset for another, such as BTC for ETH or ETH for USDC. In this regard, it is similar to Coinbase. It’s also worth mentioning that DEXs only enable users to withdraw stablecoins, not fiat currency. The distinction is that Uniswap is not a corporation, it does not have any workers, offices, or a CEO.

There are several forms of decentralized exchanges (DEX), each with its own implementation based on a distinct network. Popular DEX includes Uniswap, an Ethereum-based DEX, as well as Curve, dYdX, EtherDelta, Waves, and many more. There is no centralized entity engaged with DEX, no additional information or documents are required, and no Know Your Customer verification processes are required. Furthermore, because these protocols are decentralized, there have been some reports of people introducing bogus tokens into exchanges.

The above-mentioned expansion of DEXs is one of the primary causes for these crypto price increases, however their present performance suggests a lack of momentum. Will these DEX currencies be left behind as the market prepares for a bullish rally at the end of December?

Resistance level at $31?

At the time of publication, Uniswap was rated 17th at $21.38 with a market cap of $13.2 billion. Uniswap is attempting to break through their immediate resistance levels of $31, for the eighth week in a row, UNI is consolidating in the same price range of $20 to $30.

Uniswap is still one of the most active DEXs in the industry, momentum should catch up with it. Institutions were also registering on UniSwap in large numbers. Valour Inc., a digital asset-based exchange-traded product (ETP) issuer located in Switzerland, adopted DeFi on October 26 when it introduced the world’s first ETP tracking the governance token of leading decentralized exchange Uniswap.

Investors traded over $60 billion in crypto assets on the Uniswap platform last month. In comparison, Coinbase, the largest traditional spot-crypto-trading site, has around $150 billion (with more than 1,200 employees). This astounds people: imagine performing 40% of the trade volume on Coinbase with no overhead!

In terms of problems, a recent Cornell University research on Uniswap v3 pools indicated that over half of the liquidity providers are losing money owing to impermanent losses on average.Thousands upon thousands of users from all over the world contributed to the platform’s liquidity.

The odds of Uniswap missing out on a bullish rally are now 50/50, but owing to strong technical indicators and DEX activity, Uniswap should be able to sustain stronger price gains in the future.


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*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available NFTs or cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future return