- On Tuesday, the Uniswap is trading with a strong bearish bias at 20.75, losing -28.88% until now.
- The reason behind the bloodbath in the crypto space could be attributed to adverse developments in El Salvador.
- Forex trading participants may look for a buy trade above the $20.89 level to the target of $25.23 and $27.
On Tuesday, the Uniswap is trading with a strong bearish bias at 20.75, losing -28.88% until now. The UNIs/USD pair continues to extend its early-day bearishness as the US Securities and Exchange Commission is reportedly investigating the UniSwap Exchange. Uniswap price prediction remains bearish below the triple bottom support breakout of $25.10. What’s next?
Uniswap Labs Under SEC Investigation
The world’s biggest cryptocurrency decentralized exchange (DEX), Uniswap Labs, is reportedly under investigation by the US Securities and Exchange Commission (SEC). The SEC reportedly has enforcement lawyers investigating the DEX. Thus, the ongoing investigation kept the traders cautious and tended to have a bearish impact on the Uniswap coin.
Uniswap Price Changes – Uniswap price prediction
The Uniswap price is trading near $21.68 with a 24-hour trading volume of $695,908,222. Moreover, the Uniswap dropped by 28.88 % in the last twenty-four hours. The current market ranking is #11, with a live market cap of $17,606,966,244. The Uniswap coin has a circulating supply of 611,643,724 UNI coins and a maximum supply of 1,000,000,000 UNI coins.
In the meantime, broad-based US dollar strength has played a major role in undermining the UNIs/USD pair. In contrast to this, the bearish bias in the Bitcoin value highlights the downbeat cryptomarket mood. As a result, the positively correlated cryptocurrency is in a bearish mode.
The world’s largest cryptocurrency decentralized exchange (DEX), Uniswap Labs, is under investigation by the United States Securities and Exchange Commission (SEC). It is worth mentioning that the SEC reportedly has enforcement lawyers investigating the DEX.
The Wall Street Journal (WSJ) Report Places an Adverse Impact on Uniswap
As per the latest report from the Wall Street Journal (WSJ), the lawyers are asking for a piece of information about how investors interact with Uniswap and how the DEX is marketed. Furthermore, the Wall Street Journal (WSJ) confirmed the details through unnamed sources familiar with the matter.
The spokesman for UniSwap told WSJ that Uniswap is committed to complying with the laws and regulations governing our industry. They are providing information to regulators that will assist them with any inquiry. However, the mixed signals regarding this matter tend to hurt the Uniswap coin.
Increased US dollar weightings on UNIs/USD
The greenback’s buying bias was another critical factor that kept the UNIs/USD prices under pressure. Despite the upbeat market trading mood, the broad-based US dollar managed to stop its early-day bearish bias. It drew some fresh bids amid higher US benchmark Treasury yields.
The US 10-year Treasury yields started the week positively, up 2.2 basis points (bps) to 1.343%. Investors are keeping their eyes on Australia’s central bank policy decisions and other central bank decisions that are due throughout the week.
Bloodbath in Crypto Market Drive Dramatic Sell-off in Uniswap
The cryptocurrency market is exhibiting a bloodbath, especially during the US session. However, the reason behind its downward rally could be attributed to adverse developments in El Salvador.
El Salvador’s world-first country to adopt bitcoin hits barriers. On Tuesday, El Salvador became the first country to recognize bitcoin as legal cash despite disabling a digital wallet to deal with demand.
President Nayib Bukele, who advocated for cryptocurrency acceptance, asked customers who had already installed the government-backed app to test it.
Salvadorans wanting to download the Chivo digital wallet, which the government has marketed by guaranteeing each user $30 in bitcoin, discovered it was unavailable on popular app stores. The government then temporarily disconnected it, according to Bukele, to add extra servers to deal with demand. It seems like this has triggered massive disappointment in the market, causing a crash in the crypto space.
Uniswap Price Prediction – Brace for a Bullish Correction above $20.89
The UNI/USD price prediction remains bearish below the triple bottom support breakout of $25.10. On the 2 hour timeframe, the UNIs/USD has closed a massive bearish engulfing candle that has hit the low of $20.86.
As we can see on the chart, the pair has violated the symmetrical triangle pattern at $30. Later on, it has also disrupted the triple bottom support level of $25.10 upon bearish fundamentals from El Salvador.
The UNI/USD pair is likely to gain support at the 20.89 level on the bearish side. The closing of candles above this level can trigger a bullish bounce-off until the 25.10 and 27.07 resistance levels. At the same time, the breakout of the 20.89 level can lead the pair towards 19.44 and 18.13 levels.
On the 4-hour timeframe, the 50 day EMA (Exponential Moving Average – Red Line) is likely to provide resistance at the 28.50 level. Since the UNIs/USD price is closing below the 50 EMA, the bearish bias remains potent. Taking a look at the leading technical tool Stochastic RSI, it’s holding in the oversold zone. It means that soon these sellers will be exhausted, and we may see bulls enter the market.
Therefore, the forex trading participants may look for a buy trade above the $20.89 level to reach the targets of $25.23 and $27. Alternatively, we may see a selling trend below the $25.25 level with a target of $20.89 and 19.45. All the best.
Looking to buy or trade crypto now? Invest at eToro!
Capital at risk
Share
