Uniswap

DEX dev Uniswap Labs looks for new funding at unicorn valuation: Report

Uniswap had been previously in talks with NFT lending protocols, planning to tackle liquidity issues and the “information asymmetry” around NFTs.

Major decentralized exchange (DEX) Uniswap (UNI) is in the early stages of raising significant funds to further expand its decentralized finance (DeFi) offerings, according to a new report.

Uniswap Labs, a DeFi startup contributing to the Uniswap Protocol, is engaging with a number of investors to raise an equity round of $100 million to $200 million, TechCrunch reported on Sept. 30.

The startup is working with investors like Polychain and one of Singapore’s sovereign funds as part of the upcoming funding round, the report notes, citing two anonymous people familiar with the matter. According to the report, Uniswap would be valued at $1 billion, but the terms of the deal are subject to changes as the discussions around the round have not been finalized.

The new funding reportedly aims to bring more DeFi tools and nonfungible token (NFT) offerings to Uniswap. At the time of writing, Uniswap’s daily trading volumes amounted to $1.1 billion, or about 57% of all trading across global DEXs, according to data from DefiLlama. By comparison, Curve, the second-largest DEX after Uniswap by volumes, has about $205 million in daily volumes.

*Five largest DEXes by daily trading volumes. Source: DeFi Llama*

“Our mission is to unlock universal ownership and exchange,” Uniswap Labs chief operating office Mary-Catherine Lader reportedly said. “If you can embed the ability to swap value and have people join the community and exchange value with your project, or your company or organization — that’s a powerful way to allow more people to engage in this ownership,” she added.

Uniswap Labs declined to confirm or deny the report on the startup’s plans about the raise.

As previously reported by Cointelegraph, Uniswap has been in talks with multiple NFT lending protocols, targeting ambitious plans to tackle liquidity issues and the “information asymmetry” around NFTs. The Ethereum-based DEX has experienced a growing trend despite the bear market this year.

Launched in 2018, Uniswap completed its first-ever funding round from the American crypto-focused investment firm Paradigm in 2019. The company also closed a Series A funding round led by Andreessen Horowitz in 2020, with additional investments from firms like Paradigm, USV, Version One, Variant, Parafi Capital and others.

Uniswap eyes NFT financialization, in talks with lending protocols

In a tweet from the head of NFT product, the exchange is allegedly in contact with several NFT lending protocols to build NFT financialization.

Crypto exchange Uniswap engaged in talks with multiple nonfungible token (NFT) lending protocols, according to a social media post from Uniswap’s head of NFT product Scott Lewis.

In the tweet, Lewis highlights the company’s interest in tackling both liquidity issues and the “information asymmetry” surrounding NFTs.

uniswap is the interface for all nft liquidity.

we are now in talks with 7 nft lending protocols. we will be working with each one to solve for liquidity fragmentation and information asymmetry. this is the first step to building nft financialization.

— Scott (@Scott_eth) August 23, 2022

While Uniswap’s goal for these talks and potential collaborations with lending protocols is NFT financialization, the crowd on Twitter came back with a double-sided response. Some users deemed the decision as a step toward solidifying the future of decentralized finance, simply known as DeFi:

@uniswap keeps proving that #defi is here to stay.

— structure_fi (@structure_fi) August 23, 2022

Other users questioned the motives behind Uniswap’s interest in NFT financialization and pointed toward taking advantage of liquidation profits.

any other motive to provide this feature than profit from liquidations? or be kind to buy the lenders worthless asset at liq price and baghold it while you try and dump on yourself?

— PilotGFX (@PilotGFX) August 23, 2022

Over the last few months, Uniswap has made big steps toward including NFT activity in its service offerings. Uniswap is one of the world’s largest decentralized exchanges (DEXs), responsible for nearly $6 billion in assets in its liquidity pools.

In June, the company introduced its acquisition of Genie, an NFT marketplace aggregation platform, allowing users to find and trade digital assets across most platforms.

Shortly after, Lewis tweeted that Uniswap plans to introduce NFTs with full Sudoswap support. Sudosawp allows for anonymous interactions around NFT sales and the creation of NFT liquidity pools.

We'll be launching NFTs on Uniswap with full @sudoswap support. Pool data flowing in pic.twitter.com/nsRt9Cp1Ss

— Scott (@Scott_eth) July 22, 2022

This is not the company’s first entrance into the NFT space, as in 2019, they launched Unisocks, which was the first rendition of NFT liquidity pools. However, this latest push for NFT activity comes as these digital assets gain more traction and utility inside and outside the DeFi space.

Industries are utilizing these tokenized digital assets for everything from real estate contracts and digital fashion to collectibles and music rights monetization.

Similar platforms like OpenSea, MagicEden and even eBay are going full speed into the Wild West of NFTs. DappRadar’s Q2 industry report even suggested an NFT platform battle could be in the future.

Top 5 cryptocurrencies to watch this week: BTC, ADA, UNI, LINK, CHZ

Bitcoin price is targeting $25,000 and holding this level could trigger breakouts in ADA, UNI, LINK and CHZ.

The S&P 500 rose for the fourth successive week as investors cheered on signs that inflation may have peaked. Bitcoin (BTC) and select altcoins also extended their recovery, suggesting that investors are increasing their exposure to risk assets.

A similar trend has played out in the cryptocurrency markets. Altcoins, led by Ether (ETH), have outperformed Bitcoin after clarity on Ethereum’s Merge, according to analysts at Glassnode.

*Crypto market data daily view. Source:* *Coin360*

However, trading firm QCP Capital is cautious about the momentum in the altcoin market. They highlighted that the open interest on Ether options had surged to $8 billion, exceeding Bitcoin option OI which was at $5 billion. Glassnode suggested that traders have been booking profits on the spread between their spot long Ether versus the quarterly short Ether futures positions.

Could Bitcoin and the altcoins extend their recovery in the next few days? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

BTC/USDT

Bitcoin rose above the overhead resistance of $24,668 on Aug. 13 and Aug. 14 but the bulls could not sustain the higher levels. This indicates that bears are selling on rallies but repeated breach of an overhead resistance tends to weaken it.

The gradually upsloping 20-day exponential moving average of $23,414 and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside. If bulls sustain the price above $25,000, the momentum could pick up further and the BTC/Tether (USDT) pair could rally to $28,000.

This level may act as a stiff resistance but if bulls clear this hurdle, the rally could extend to $32,000. The critical level to watch on the downside is the 20-day EMA. A bounce off it will indicate that the sentiment remains positive and traders are buying on dips.

On the contrary, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that bears remain active at higher levels. The pair could then drop to the 50-day simple moving average of $21,976.

*BTC/USDT 4-hour chart. Source: TradingView*

The $24,668 level is witnessing a tough battle between the bulls and the bears. The upsloping moving averages indicate advantage to buyers but the negative divergence on the RSI suggests the momentum may be weakening.

If the price breaks below the 20-EMA, it will signal a minor advantage to the bears. The pair could then decline to the 50-SMA and later to $23,600. Alternatively, if the price turns up from the 20-EMA and rises above $25,050, the up-move may resume.

ADA/USDT

Cardano (ADA) broke and closed above the overhead resistance at $0.55 on Aug. 13. This indicates that the uncertainty has resolved in favor of the bulls.

The rising 20-day EMA of $0.52 and the RSI in the positive territory indicate that bulls have the upper hand. The ADA/USDT pair could rally to $0.63 and then to the strong overhead resistance at $0.70. This level is likely to attract strong selling by the bears.

Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that the break above $0.55 may have been a bull trap. The pair could then decline to the 50-day SMA of $0.49 and later to $0.45.

*ADA/USDT 4-hour chart. Source: TradingView*

The pair completed an ascending triangle pattern on a break and close above the overhead resistance at $0.55. This pushed the RSI on the 4-hour chart to overbought levels, which may have tempted short-term traders to book profits.

The price may drop to the breakout level of $0.55. If bulls flip this level into support, the pair may continue its up-move to the pattern target at $0.65. This positive view could invalidate in the near term if the price plummets below the uptrend line.

UNI/USDT

Uniswap (UNI) has been consolidating between $8.11 and $9.83 for the past few days. This suggests that the bulls are buying the dips but the bears are defending the overhead resistance.

The longer the price remains in the range, the stronger the breakout will be from it. The 20-day EMA of $8.54 is sloping up and the RSI is in the positive territory, indicating an advantage to buyers. If bulls thrust the price above $9.83, the UNI/USDT pair could pick up momentum and rally toward $10.55 and later to $12.

Alternatively, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that the pair may continue its range-bound action for some more time. The bears will have to sink and sustain the price below $8.11 to gain the upper hand.

*UNI/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bears are defending the zone between $9.50 and $9.83. If the price breaks below $8.74, the sellers will attempt to sink the pair to the strong support at $8.11. The buyers are expected to buy the dip to this level.

The flattening moving averages and the RSI near the midpoint suggest that the range-bound action may continue for some more time. The next trending move could start on a break above $9.83 or on a close below $8.11.

LINK/USDT

Chainlink (LINK) has been trading in a large range between $5.50 and $9.50 for the past several weeks. The bulls attempted to push the price above the range on Aug. 12 but the bears held their ground.

The 20-day EMA of $8.00 is sloping up and the RSI is in the positive territory, indicating that bulls have the upper hand. If the price rebounds off the 20-day EMA, the bulls will make one more attempt to clear the overhead hurdle at $9.50. If they succeed, the LINK/USDT pair could rally to $12.30 and then to $13.50.

Instead, if the price breaks below the 20-day EMA, it will indicate that traders are booking profits near the resistance. That could sink the pair to the 50-day SMA of $7.00 and increase the stay inside the range for a few more days.

*LINK/USDT 4-hour chart. Source: TradingView*

The price turned down from the overhead resistance at $9.50 and broke below the 20-EMA on the 4-hour chart. This suggests that traders may be booking profits. The pair could drop to the 50-SMA, which may act as a strong support.

If the price rebounds off the 50-SMA, the bulls will again try to push the pair above $9.50. If they succeed, the pair could start the next leg of the up-move. On the other hand, if the price slips below the 50-SMA, the pair could decline to $8.29.

CHZ/USDT

Chiliz (CHZ) has been in a strong recovery for the past few days but the long wick on the Aug. 14 candlestick suggests that bears are defending the overhead resistance at $0.19.

Although the rising 20-day EMA of $0.14 indicates an advantage to buyers, the RSI in the overbought territory suggests a minor correction or consolidation in the short term. If the price turns down from the current level, the first critical level to watch on the downside is the 20-day EMA.

A strong rebound off this level will suggest that the bulls are viewing the dips as a buying opportunity. That will improve the prospects of a break above the overhead resistance. If that happens, the CHZ/USDT pair could rally to $0.22 and then to $0.24.

Alternatively, if the price slips below the 20-day EMA, the pair could slide to the 50-day SMA of $0.12. Such a move will suggest that the pair may form a range in the near term.

*CHZ/USDT 4-hour chart. Source: TradingView*

The sharp rally in the pair pushed the RSI deep into the overbought territory on the 4-hour chart, indicating that a correction or consolidation was possible. The same may have started and the pair could decline to the 20-EMA, which is an important level to keep an eye on.

If the price rebounds off the 20-EMA, it will suggest that the positive sentiment remains intact. The buyers will then again try to resume the up-move. This bullish view will be negated in the near term if the price breaks and sustains below the 50-SMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Finance Redefined: Solana and Nomad bridge fall prey to exploits losing millions

The top 100 DeFi tokens had a mixed price action over the past week, with many seeing a downturn after some bullish action last week.

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

This past week, the DeFi ecosystem saw two exploits, one after another, resulting in the loss of millions of dollars. First, cross-bridge token platform Nomad became a victim of what many deemed a decentralized robbery, which saw almost $190 million drained out of their wallets.

Solana ecosystem became the victim of a widespread unknown attack that saw thousands of wallets getting drained out of all the funds. Apart from a series of exploits, Nansen admitted their negligence toward the DeFi market during the NFT boom.

The top-100 DeFi tokens had a mixed price action over the past week, with many seeing a downturn after some bullish action last week.

Nomad token bridge drained of $190M in funds in security exploit

The Nomad token bridge appears to have experienced a security exploit that has allowed hackers to systematically drain a significant portion of the bridge’s funds over a long series of transactions.

Nearly the entire $190.7 million in crypto has been removed from the bridge, with only $651.54 left remaining in the wallet, according to the DeFi tracking platform DefiLlama. However, Nomad later suggested to Cointelegraph that some of the funds were withdrawn by “white hat friends” who took the funds out with the intention of safeguarding them.

Slope wallets blamed for Solana-based wallet attack

As the dust settles from yesterday’s Solana (SOL) ecosystem mayhem, data is surfacing that wallet provider Slope is largely responsible for the security exploit that stole crypto from thousands of Solana users.

Slope is a Web3 wallet provider for the Solana layer-1 blockchain. Through the Solana Status Twitter account on Wednesday, the Solana Foundation pointed the finger at Slope, stating that “it appears affected addresses were at one point created, imported, or used in Slope mobile wallet applications.”

Nansen admits neglecting DeFi plans during the NFT craze

CEO and co-founder Alex Svanevik recently spoke about Nansen’s growth, highlighting that the company has registered over 130 million addresses and has grown 30% despite the crypto downturn. Svanevik credited much of his success to the value of blockchain platforms, notably those based on Ethereum.

Cointelegraph reached out to Nansen’s Andrew Thurman for more insight into the company’s success. Thurman, a Simian psychometric enhancement technician, explained that after the nonfungible token (NFT) craze, they neglected their DeFi plans a bit.

Uniswap Foundation proposal gets mixed reaction over $74M price tag

The Uniswap Labs community has already begun mulling over a new proposal that would form a Uniswap Foundation based in the United States, but first, it’s going to cost $74 million.

The proposal has garnered mixed feedback from the community so far, with many praising the foundation’s plans to support and expand the Uniswap ecosystem, while others have balked at its hefty price tag.

DeFi market overview

Analytical data reveals that DeFi’s total value locked registered a rise of nearly 9 billion dollars from the past week, posting a value of $79.4 billion. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top-100 tokens by market capitalization had a mixed week, with several tokens trading in red while a few others registered even double-digit gains.

Yearn.finance (YFI) was the biggest gainer among the top 100, registering a 20% surge over the past week, followed by Lido DAO (LDO) with a 16% surge. Fantom (FTM) saw a 10% price rise and PancakeSwap (CAKE) registered an 8% rise on the weekly chart.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.

Top 5 cryptocurrencies to watch this week: BTC, BNB, UNI, FIL, THETA

Consolidation from BTC has opened the door for BNB, UNI, FIL and THETA to run higher.

Bitcoin (BTC) has made a strong comeback in the month of July and is on track for its best monthly gains since October 2021. The sharp recovery in Bitcoin and several altcoins pushed the Crypto Fear and Greed Index to 42/100 on July 30, its highest level since April 6.

Investors seem to be making the most of the depressed levels in Bitcoin. Data from on-chain analytics firm Glassnode shows that Bitcoin in exchange wallets has dropped to 2.4 million Bitcoin in July, down from the March 2020 levels of 3.15 million Bitcoin. This has sent the metric to its lowest level since July 2018.

Bloomberg Intelligence senior commodity strategist Mike McGlone highlighted that the United States Federal Reserve’s indication to consider rate hikes on a “meeting by meeting basis” may lay the groundwork for Bitcoin to outperform most assets. He said that Bitcoin’s “risk vs. reward tilted favorably for one of the greatest bull markets in history.”

Could Bitcoin extend its rally in the short term and could that trigger buying in select altcoins? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

BTC/USDT

Attempts by the bulls to sustain the price above $24,276 have failed in the past two days, indicating that the bears are defending the level with vigor. However, a minor positive is that the bulls have not ceded ground to the bears.

This indicates that the bulls are not booking profits in a hurry as they expect a break above the overhead resistance. If the price breaks and closes above $24,276, the BTC/Tether (USDT) pair could pick up momentum and rally toward $28,171. This level may act as a resistance, but if bulls overcome the barrier, the next stop could be $32,000.

The upsloping 20-day exponential moving average (EMA) of $22,480 and the relative strength index (RSI) in the positive territory indicate that bulls have the upper hand.

To invalidate this bullish view in the short term, the bears will have to sink the price below the 20-day EMA. That could clear the path for a possible drop to the 50-day simple moving average (SMA) of $21,386 and then to the support line. A break below this level will suggest that bears are back in command.

The 4-hour chart shows that bulls pushed the price above the overhead resistance of $24,276 but could not build upon the breakout. The bears pulled the price back below the level but are struggling to sink the pair below the 20-EMA. This indicates that bulls are buying on dips.

If the price rebounds off the current level, the bulls will have another shot at the overhead zone between $24,276 and $24,668. If this zone is scaled, the bullish momentum could pick up further. Conversely, if bears sink the price below the 20-EMA, the pair could drop to the 50-SMA.

BNB/USDT

Binance Coin (BNB) broke above the downtrend line on July 28, indicating a potential trend change. The up-move is facing resistance near the psychological level of $300, but a positive sign is that the buyers have not given up much ground. This suggests that the bulls are not hurrying to book profits.

The upsloping 20-day EMA of $263 and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers drive the price above $300, the BNB/USDT pair could resume its uptrend toward the overhead resistance at $350.

Alternatively, if the price turns down and breaks below $285, the pair could drop to the downtrend line. The 20-day EMA is placed close to this level, hence it becomes an important support to keep an eye on. If bears sink the price below the 20-day EMA, the pair could decline to the 50-day SMA of $239.

*BNB/USDT 4-hour chart. Source: TradingView*

The pair turned down from the overhead resistance at $300 but the bulls are attempting to defend the 20-EMA. This indicates buying on dips. The bulls may again attempt to push the price above $300. If they manage to do that, the uptrend could resume. The pair could rise to $311 and then to $322.

This positive view could invalidate in the short term if the price turns down and breaks below the 20-EMA. If that happens, the pair could slide to the 50-SMA. The buyers are expected to defend this level aggressively because a break and close below it could open the doors for a decline to $239.

UNI/USDT

Uniswap (UNI) rebounded off the breakout level of $6.08 on July 26, indicating strong buying on dips. The up-move reached near the psychological resistance at $10 on July 28 where the bears are mounting a strong defense.

The upsloping moving averages and the RSI in the positive territory indicate an advantage to buyers. If the price rebounds off $8.11, it will suggest that buyers are trying to flip this level into support.

A strong rebound off $8.11 could open the doors for a retest at $10. The bulls will have to clear this overhead hurdle to indicate the start of the next leg of the up-move to $12.

Conversely, if the price turns down and breaks below $8.11, the UNI/USDT pair could drop to the 20-day EMA of $7.48. A break and close below this level will suggest that the bullish momentum has weakened.

The 4-hour chart shows that the bulls are attempting to defend the 20-EMA. If the price turns up from the current level and rises above $9.18, the pair could challenge the overhead resistance zone between $9.83 and $10.

Alternatively, if the price breaks below the 20-EMA, it will suggest that supply exceeds demand. The pair could then drop to the zone between $8.11 and the 50-SMA. This is an important zone for the bulls to defend because if they fail to do that, the short-term momentum could tilt in favor of the bears.

FIL/USDT

After staying in a tight range for several days, Filecoin (FIL) broke out sharply on July 30, signaling a potential trend change. The RSI has risen into the overbought territory, which is another sign that the downtrend may be ending.

The up-move may face resistance at the overhead resistance at $9.50 but if bulls do not give much ground from this level, the likelihood of a breakout increases. If that happens, the FIL/USDT pair could start its northward march toward $16, which may again act as a strong resistance.

If the price turns down from the current level and breaks back below $6.55, it will suggest that bears are active at higher levels. The pair may thereafter oscillate in a large range between $5.00 and $9.50 for a few days.

*FIL/USDT 4-hour chart. Source: TradingView*

The pair picked up momentum after breaking above $6.40. The bears tried to stall the up-move at $8.89 but the bulls had other plans. They aggressively bought the dip and have pushed the price near the stiff overhead resistance at $9.50.

If the price turns down from the current level, the bulls will attempt to arrest the pullback at the 38.2% Fibonacci retracement level of $8.04. A strong bounce off this level will increase the possibility of a break above $9.50. If that happens, the pair could rally to $10.82. This bullish view could invalidate below $7.70.

THETA/USDT

Theta Network (THETA) has been consolidating between $1 and $1.55 for the past several days. The bulls tried to push the price above the overhead resistance on July 30 but the bears held their ground.

If the price rebounds off the moving averages, the bulls will make another attempt to clear the overhead hurdle at $1.55. If they succeed, the THETA/USDT pair could start a new uptrend. The rally could first reach the pattern target of $2.10 and if this level is crossed, the rally may extend to $2.60.

Contrary to this assumption, if the price breaks below the moving averages, the bears will try to pull the pair to $1.00. Such a move could indicate that the range-bound action may continue for a few more days.

*THETA/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the pair turned down from $1.50 and is struggling to rebound off the 20-EMA. This indicates that traders may be booking profits on every minor rise.

If the price sustains below the 20-EMA, the pair could drop to the 50-SMA. This is an important level for the bulls to defend because a break below it could sink the pair to $1.15.

Alternatively, if the price rebounds off the moving averages with strength, it will suggest that lower levels are attracting buyers. If bulls push the price above $1.42, a retest of the $1.50 to $1.55 resistance zone is possible.

Uniswap’s 80% gains in July are in danger with UNI price painting a classic bearish pattern

Uniswap price risks falling 50% from its current levels due to a bearish reversal setup.

Uniswap (UNI) looks ready to post its best monthly performance in more than a year as it rallied approximately 80% in July, but signs of an extended pullback in the near term are emerging.

Uniswap price nearly doubles in July

UNI’s price is having one of its best months ever, reaching nearly $9 on July 30 versus nearly $5 at the beginning of the month, best returns since January 2021’s 250% price rally.

*UNI/USD monthly price chart. Source: TradingView*

Merge FOMO an UNI “fee switch” proposal

Uniswap’s gains primarily surfaced due to similar upside moves in a broader crypto market. But they turned out to be relatively massive due to an ongoing euphoria surrounding “the Merge.”

Notably, the Ethereum blockchain’s potential transition from proof-of-work to proof-of-stake in September has triggered a buying hysteria among related toke.

$ETH move bringing the entire ecoystem with it.

Best movers:
•Defi: $LDO $UNI $BIT $AAVE
•Layer 2: $OP $MATIC

And of course because it’s crypto $ETC is the biggest pump. pic.twitter.com/hN9Rd6Yr9j

— Luke Martin (@VentureCoinist) July 27, 2022

Additionally, UNI may also have been drawing its gains from a so-called “fee switch” proposal.

Specifically, community governance system that oversees Uniswap has been discussing whether or not they should grant UNI holders the right to earn 0.5% commission from Uniswap’s 3% trading fees while rewarding the rest for liquidity providers.

if $uni turns on the fee switch its an easy top 10 coin in crypto

— moon (macro expert) (@MoonOverlord) July 29, 2022

UNI “rising wedge” still in play

From a technical’s perspective, UNI is now heading lower after testing $20 as its interim resistance.

It now eyes an extended pullback toward the upper trendline of its prevailing “rising wedge” pattern—around $8.

However, its price would risk falling even further if it lands back inside the pattern’s trading range, defined by two ascending, converging trendlines.

*UNI/USD daily price chart featuring ‘rising wedge’ breakdown. Source: TradingView*

That is primarily because rising wedges are bearish reversal patterns.

They resolve after the price breaks below their lower trendlines. Meanwhile, their profit target are typically at length equal to the maximum distance between their upper and lower trendlineswhen measured from the breakdown point.

In other wordsUNI’s price could fall toward $4.50 by September, down 50% from today’s price if the pattern plays out.

Conversely, a bounce back at or ahead of testing the rising wedge’s upper trendline could have UNI retest $10 as its interim resistance. In doing so, it could eye an extended upside move toward the $11.50-$17 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Uniswap’s 80% gains in July are in danger with UNI price painting a classic bearish pattern

Uniswap price risks falling 50% from its current levels due to a bearish reversal setup.

Uniswap (UNI) looks ready to post its best monthly performance in more than a year as it rallied approximately 80% in July, but signs of an extended pullback in the near term are emerging.

Uniswap price nearly doubles in July

UNI’s price is having one of its best months ever, reaching nearly $9.00 on July 30 versus nearly $5.00 at the beginning of the month, best returns since January 2021’s 250% price rally.

Merge FOMO an UNI “fee switch” proposal

Uniswap’s gains primarily surfaced due to similar upside moves in a broader crypto market. But they turned out to be relatively massive due to an ongoing euphoria surrounding the Merge .

Notably, the Ethereum blockchain’s potential transition from proof-of-work (PoW) to proof-of-stake (PoS) in September has triggered a buying hysteria among related toke.

$ETH move bringing the entire ecoystem with it.

Best movers:
•Defi: $LDO $UNI $BIT $AAVE
•Layer 2: $OP $MATIC

And of course because it's crypto $ETC is the biggest pump. pic.twitter.com/hN9Rd6Yr9j

— Luke Martin (@VentureCoinist) July 27, 2022

Additionally, UNI may also have been drawing its gains from a so-called “fee switch” proposal.

Specifically, the community governance system that oversees Uniswap has been discussing whether or not they should grant UNI holders the right to earn 0.5% commission from Uniswap’s 3% trading fees while rewarding the rest for liquidity providers.

if $uni turns on the fee switch its an easy top 10 coin in crypto

— moon (macro expert) (@MoonOverlord) July 29, 2022

UNI “rising wedge” still in play

From a technical perspective, UNI is now heading lower after testing $20 as its interim resistance.

It now eyes an extended pullback toward the upper trendline of its prevailing rising wedge pattern—around $8.00.

However, its price would risk falling even further if it lands back inside the pattern’s trading range, defined by two ascending, converging trendlines.

That is primarily because rising wedges are bearish reversal patterns.

They resolve after the price breaks below their lower trendlines. Meanwhile, their profit target is typically at length equal to the maximum distance between their upper and lower trendlines when measured from the breakdown point.

In other words, UNI’s price could fall toward $4.50 by September, down 50% from the price on July 30 if the pattern plays out.

Uniswap price risks 45% crash by September despite Robinhood listing

Robinhood listing brought UNI some of its recent gains but it doesn’t guarantee an extended bull run.

The latest Uniswap (UNI) chart pattern suggests that investors should be prepared for a correction after gaining nearly 20% over the past week.

A 45% UNI price crash ahead?

UNI’s price has been trending upward since mid-June inside what appears to be a “rising wedge,” which traditional analysts view as a bearish reversal pattern due to its history of luring bulls into buying fake-out bounces.

Therefore, rising wedges resolve after the price breaks below the lower trendline. Traders typically calculate a rising wedge’s downside target by subtracting the distance between its upper and lower trendline from the breakdown point.

*UNI/USD daily price chart featuring ‘rising wedge’ setup. Source: TradingView*

That puts UNI’s downside target at $3.8 by September 2022, down 45% from July 15’s price if the breakdown begins near $6.52. However, the target would shift upward to $4.65 if the breakdown originates at the apex, i.e., where the wedge’s trendlines converge, resulting in a drop of 32.25% from July 15’s price

Interestingly, a rising wedge also formed between February and April. The pattern snapped a 65% upside move, with a broader 70% price slump that took UNI’s value to $3.56 per unit from around $12.50.

UNI price bullish catalysts

Simultaneously, Uniswap has also been painting an inverse head and shoulders (IH&S) pattern with an upside target sitting around $9.50, up 40% from current price levels.

*UNI/USD daily price chart featuring IH&S setup. Source: TradingView*

The bullish setup has one fundamental backing: Robinhood.

Notably, the U.S.-based zero-fee trading app announced on July 14 that it had added Uniswap to its portfolio of cryptocurrencies for its 22.8 million retail investors.

UNI is now on Robinhood @Uniswap #CryptoListing https://t.co/KBoYMziAyc

— Robinhood (@RobinhoodApp) July 14, 2022

Robinhood’s listing doesn’t guarantee an extended bull run, however, as the market has witnessed in Shiba Inu’s (SHIB) case.

Notably, the firm’s decision to list SHIB assisted the token in rising by almost 20% on April 12 but couldn’t help it hold on to its gains. SHIB’s price has crashed by nearly 60% since its Robinhood’s listing.

UNI, MATIC and AAVE surge after Bitcoin price bounces back above $20K

Bitcoin, Uniswap, Polygon and Aave turned green just a day after the highest CPI print in over 40 years.

Crypto investors found cause for celebration on July 14 as the market experienced a positive trading session just one day after the Consumer Price Index (CPI) posted a June print of 9.1%, its highest level since 1981.

*Daily cryptocurrency market performance. Source:* *Coin360*

The move higher in the market wasn’t entirely unexpected for seasoned traders who have become familiar with a one to two-day bounce in asset prices following the most recent CPI prints. These traders also know there’s nothing to get too excited about, as the bounces have typically been followed by more downside once people realize that the high inflation print is a negative development.

Nevertheless, the green in the market is a welcome sight after the rough start to 2022.

*Top 5 coins with the highest 24-hour price change. Source: CoinMarketCap*

According to data from Cointelegraph Markets Pro and TradingView, the biggest gainers over the past 24 hours were Uniswap (UNI), Polygon (MATIC) and Aave (AAVE).

Robinhood lists UNI

Uniswap, the top decentralized exchange (DEX) by volume, saw its token price head higher on July 13 after hitting a low of $5.23. The token has since climbed 36% to hit a daily high of $7.11 on July 14 amid a 104% spike in its 24-hour trading volume to $449 million.

The sharp turnaround in UNI price and trading volume comes as the popular brokerage firm Robinhood announced that the UNI token is now available to trade on the platform, exposing the asset to a large cohort of new buyers who don’t have accounts on other cryptocurrency exchanges.

Disney news provides a boost for MATIC

Polygon is one of the top layer-2 scaling solutions for the Ethereum network that offers a faster- and lower-fee transaction experience for users and protocols.

Data from Cointelegraph Markets Pro and TradingView shows that after briefly dipping to a low of $0.52 on July 13, the price of MATIC spiked 36% to hit a daily high at $0.707 on July 14 on the back of a 120% spike in its 24-hour trading volume.

*MATIC/USDT 4-hour chart. Source: TradingView*

MATIC’s price increase follows an announcement that the protocol was the only blockchain selected by Disney to be part of its 2022 Accelerator Program.

Interrupting the #GreenBlockchainSummit for some breaking news!

We’re excited to be the only blockchain chosen to be a part of the Disney Accelerator program. https://t.co/LaGU4bhidi

— Polygon – MATIC (@0xPolygon) July 13, 2022

Aave rallies on stablecoin developments

Aave, a popular decentralized finance platform, is a lending and borrowing protocol that currently holds $5.63 billion in total value locked (TVL), making it the second-ranked DeFi platform by TVL behind MakerDAO.

Data from Cointelegraph Markets Pro and TradingView shows that over the past 24-hours, the price of AAVE has rallied 38.5% from a low of $67.10 to hit a daily high of $93 in the afternoon hours on July 14.

*AAVE/USDT 4-hour chart. Source: TradingView*

Aave sparked excitement within its community on July 7 when it revealed plans to release its own GHO stablecoin, which will be a collateral-backed stablecoin that is native to the Aave ecosystem.

1/ Calling all GHOsts

We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.

Read more below and discuss your thoughts for the snapshot (coming soon)!https://t.co/P7tHl9LbBe

— Aave (@AaveAave) July 7, 2022

The overall cryptocurrency market cap now stands at $927 billion and Bitcoin’s dominance rate is 42.6%.

Top 5 cryptocurrencies to watch this week: BTC, UNI, ICP, AAVE, QNT

Bitcoin is trending toward a retest of its lower support and if this happens, UNI, ICP, AAVE and QNT could breakout to the upside.

Bitcoin (BTC) has given up ground over the weekend as investors remain cautious about the United States consumer inflation data to be released on July 13. Analysts anticipate June’s consumer price index to be higher than May’s 8.6% level.

Due to the macro uncertainty, investors are not confident that Bitcoin’s correction is over. However, Fidelity Investments’ director of global macro, Jurrien Timmer, said that Bitcoin is back at the 2013 bull market levels “if the price per millions of non-zero addresses“ is considered for valuing it. That implies that “Bitcoin is cheap.”

The readings on the Reserve Risk indicator, which shows long-term holder sentiment, plunged to a new all-time low in July. Commentator Murad said this meant that “we are in the high timeframe bottoming zone” or the indicator may be broken.

Could Bitcoin turn around and start a new rally or will it continue lower? Are altcoins showing signs of bottoming out? Let’s study the charts of the top-5 cryptocurrencies to find out.

BTC/USDT

Bitcoin broke above the symmetrical triangle pattern on July 7 but the bulls could not sustain the momentum at higher levels. This suggests that the bears have not surrendered and are attempting to defend the overhead resistance at $23,363.

The bears are attempting to sustain the price below the 20-day exponential moving average (EMA) of $21,230. If they succeed, the BTC/Tether (USDT) pair could decline to the support line of the triangle.

If the price rebounds off this level, it will suggest that bulls continue to buy at lower levels. The bulls will then again strive to push the price above the overhead resistance at $23,363 and the 50-day simple moving average (SMA) of $24,692. If they succeed, it could signal the start of a new up-move.

On the contrary, if the price breaks below the support line, the bears will endeavor to pull the pair below $17,622.

The bears pulled the price below the 20-EMA but a minor positive is that the bulls are trying to defend the 50-SMA. This indicates accumulation at lower levels. If bulls thrust the price back above the 20-EMA, the pair could rise toward $22,500.

Alternatively, if the price turns down from the 20-EMA, the likelihood of a break below the 50-SMA increases. If that happens, the pair could extend its decline to $19,300. The flattening 20-EMA and the relative strength index (RSI) just below the midpoint do not give a clear advantage to the bulls or bears.

UNI/USDT

Uniswap (UNI) broke above the overhead resistance at $6.08, which completed a bullish inverse head and shoulders pattern. The bears are attempting to pull the price back below the breakout level.

If they manage to do that, it will suggest that the rise above $6.08 may have been a bull trap. That could pull the price toward the 20-day EMA of $5.39. If the price rebounds off this level with strength, it could increase the possibility of a break above $6.62. The pair could then pick up momentum and rally toward the pattern target of $8.78.

Conversely, if the price breaks below the moving averages, it will suggest that the bullish momentum has weakened. The UNI/USDT pair could then remain range-bound for a few days.

The bears pulled the price below the breakout level of $6.08 but the strong rebound off the 20-EMA shows aggressive buying at lower levels. The buyers will make another attempt to push the price above $6.62 and resume the uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will suggest that the bears are trying to trap the aggressive bulls. The pair could then drop to the 50-SMA. If this level also cracks, the decline could extend to $4.60.

ICP/USDT

Internet Computer (ICP) rose above the 50-day SMA of $6.48 on July 8, indicating that the bulls are attempting to form a bottom. The moving averages are close to completing a bullish crossover and the RSI is in the positive zone, suggesting that the bears may be losing their grip.

If the price rebounds off the moving averages, it will suggest that the bulls have flipped the level into support. That could open the doors for a possible rally to the psychological level of $10, where the bears may again pose a strong challenge.

Alternatively, if the price turns down and breaks below the moving averages, it will indicate that the bears continue to sell aggressively at higher levels. The ICP/USDT pair could then drop to $5.00, which is likely to act as a strong support.

*ICP/USDT 4-hour chart. Source: TradingView*

The long wicks on several candlesticks above $7.00 indicate that bears have not yet given up and they continue to sell on rallies. The bears pulled the price back below the 20-EMA but a minor positive is that the bulls aggressively purchased the dip. This suggests demand at lower levels.

The buyers are trying to push the price back above the 20-EMA. If they succeed, the pair could rise to $6.70 and later to $7.00.

Contrary to this assumption, if the price turns down from the overhead resistance and slips below $6.30, the pair could slide to the 50-SMA.

AAVE/USDT

Aave’s (AAVE) recovery rose above the 50-day SMA of $79 on July 9, indicating a likely change in trend. The 20-day EMA of $68 has started to turn up and the RSI is in the positive zone, indicating that bulls are attempting to gain the upper hand.

If bulls sustain the price above the 50-day SMA, the AAVE/USDT pair could pick up momentum and rally toward the psychological resistance at $100. This level may act as a strong hurdle, but if bulls arrest the next decline above the 50-day SMA, it will suggest that buyers are back in the game. The pair could then attempt a rally to $120.

Contrary to this assumption, if the price sustains below the 50-day SMA, it will suggest that bears continue to sell on rallies. The bears will then strive to sink the pair below the 20-day EMA and trap the aggressive bulls.

The 4-hour chart shows that the pair broke above $78 and completed a bullish ascending triangle pattern. The bears pulled the price back below the breakout level, but a positive sign is that the buyers are defending the 20-EMA.

If the price rises and breaks above $83, the pair could pick up momentum and rally to $93. The pattern target of this bullish setup is $110.

The bears will have to sink the price back below the 20-EMA to invalidate this positive view. That could open the doors for a possible drop to the 50-SMA.

QNT/USDT

Quant (QNT) has risen sharply in the past few days, indicating that a bottom may be in place. The momentum picked up after buyers pushed the price above $67.

The moving averages have completed a bullish crossover and the RSI is in the positive zone, signaling a possible trend change. The up-move is facing a strong hurdle near $90.

If the price turns down from this resistance but rebounds off the 20-day EMA of $64, it will suggest that the sentiment has turned positive and traders are buying on dips. That could enhance the prospects of a rally to the psychological level of $100.

This positive view could invalidate in the short term if the price continues lower and breaks back below $67.

*QNT/USDT 4-hour chart. Source: TradingView*

The sellers are attempting to stall the up-move at $90 but the upsloping moving averages and the RSI in the positive territory indicate that bulls have the upper hand. If the price rebounds off the 20-EMA, the buyers could again push the price toward $90. A break and close above this resistance could signal the resumption of the short-term uptrend.

This positive view could be invalidated in the near term if the price turns down and breaks below the 20-EMA. The pair could then decline to the 50-SMA.