Since the bear gained control, cryptocurrencies have experienced higher volatility. The Bitcoin price plunged to $18,363 Oct 13, and was then reversed today to $19,354. Unlike the other top coins creeping, Uniswap’s native token, UNI, marks higher gains. Although it was at $5.50 on Thursday when Bitcoin crashed, UNI gained over 14% and reached a high of $6.49.
At the time of writing, the token’s value hovers around $6.20, up by 0.96% in the last 24 hours. The Uniswap market capitalization also signals a bullish trend. This is a sign that the crypto winter began to ignore this project. This represents a gain in 0.24%, as its capitalization has risen to $4.70billion.
Financial indicators MACD Line and RSI indicate bearish divergence
According to the daily price analysis, UNI against USD shows a bullish trend. Price actions show a pattern of high-low price movements that indicates an uptrend in the token’s value. Investors did not miss any opportunities and connected with every swing low, as evidenced by recent price moves. Uniswap’s retracement phase ended below $5 last week. Now, it seems that they are finding resistance at this level. Expected price for the token is between $5.3 and $7 in October.
Opposite to the positive happenings within the UNI network, the Moving Average Convergence/Divergence (MACD) line, an oscillator used to indicate market trends, currently points toward the bearish signal for the token and crosses the line. The Relative Strength Index, (RSI), continues to fall towards the 50-zone peak and shows a bearish divergence. Source: UNIUSD price chart from TradingView.com
Uniswap Will Deploy On zkSync To Get A Lower Fee and Enhanced Security
UNI is the governance token at the decentralized exchange Uniswap. It allows users trade and sell cryptocurrency using smart contracts. The sector is seeing users and other organizations pushing privacy. This has led to increased adoption and positive effects on prices. Coin Center, an organization that focuses on cryptocurrency, brought a lawsuit against OFAC on Wednesday, 12 October 2022. The suit was over the restrictions placed on Tornado Cash (a privacy mixer) which is a decentralized cryptocurrency tumbler. The news was quickly spread and almost all the market responded by becoming green.
Notably, today’s announcement by the Uniswap platform might become a catalyst to pump the token’s price further. The Uniswap platform has announced that it will use zkSync to improve privacy and security.
ZK Rollups are a new technology used by zkSync to speed up transactions and reduce gas costs. Following a Governance vote, the company decided that privacy-focused layer 2 would be deployed. Offering a minimum fee without compromising on security will attract more users and accelerate the network’s activity.
Matter Labs (the parent company behind zkSync), stated that the move would allow new users to sign up. The platform will also be more appealing due to the lower network fees than Ethereum. In a statement, the company stated that they were not aware of any other fees.
There’s significant value in Uniswap being available on an EVM-compatible ZK Rollup. Deploying early on zkSync helps solidify Uniswap’s place as the number one DEX and a thought leader.
Therefore, with zkSynce launch on mainnet within the next six weeks, investors’ wallets may profit from the project’s growth. The token could also experience resistance over $7 within the next few days which is difficult to manage for investors.
Featured image by Pixabay, chart from TradingView.com