Uniswap price pulled back as the crypto market crashed in the past few days. UNI token dropped below $6 on Sunday, down from this month’s high of $7.5500. It has also tumbled by over 70% from its highest point in December despite some notable tailwinds. This article explores whether the UNI price has more upside to go.
Uniswap has numerous tailwinds
Uniswap, the biggest player in the decentralized exchange industry, faces some notable tailwinds that may benefit the UNI token in the future.
First, despite strong competition from other decentralized exchanges, it still maintains its robust market share. A good example of this is what happened in the last 30 days when it processed transactions worth over $64 billion, a bigger number compared to its top peers.
PancakeSwap handled transactions worth $51.1 billion, while Raydium and Meteora processed $26 billion and $17.8 billion, respectively. This growth is likely because Uniswap exists in more chains, including Ethereum, Polygon, Arbitrum, Base, and Avalanche.
Second, Uniswap launched Unichain earlier this year, a process that has become highly successful. Unichain is a layer-2 network that aims to be a market leader in the industry. A few months after launch, it has already attracted over 20 developers, and more are on the way.
DEX networks in the Unichain project have continued to attract users and volume. For example, Unichain handled over $318 million in the last 24 hours, making it the seventh-biggest player in the industry. It has handled $3.5 billion in the last seven days, a 18% increase from the previous week. Also, Unichain has cumulatively handled over $10 billion since inception.
These numbers mean that Unichain has already overtaken some of the oldest and most popular chains in the crypto industry. For example, it has handled more transactions than Cardano, whose cumulative volume is $4.93 billion. It is also beating some popular chains like Tron, Avalanche, and Polygon.
The other top Uniswap tailwind is that the network is making a lot of money as volume in the network jump. Data shows that Uniswap has become the second most profitable player in decentralized finance this year. It has made $357 million so far this year, beating other top players in DeFi like Lido, AAVE, and PancakeSwap.
Uniswap price analysis
UNI price chart | Source: TradingView
The 3-day chart shows that the UNI price peaked at $19.42 in November and then retreated to the current $5.7. Its recent attempt to rebound found substantial resistance at the 50-day moving average at $7.54.
The coin remains above the important support at $4.6763, the lowest swing on August 1 last year. It is also higher than the ascending trendline that connects the lowest swings since June last year.
Therefore, UNI price will likely remain under pressure for a while and then bounce back once the crypto bull run resumes. Such a move will push it to the next resistance level at $15. A drop below the ascending trendline will invalidate the bullish outlook.
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