The Uniswap price has been confounding predictions of late, especially with its bearish turn. After a recent surge to the $22 level, Uniswap has fallen back by as much as 20% to the $17 level and the decline seems to be continuing.
The negative crypto sentiment is undoubtedly adding fuel to the fire although an imminent recovery may also be on the cards.
At present, the Uniswap price is trading between a tight range of $17.05-$17.20. There appears to be good support at the $17 level. If that breaks then UNI should retest the June 25 low of $15.78 where there is further strong support.
The crypto market is currently gripped with negative sentiment, so it is quite difficult to see an imminent recovery for the Uniswap price at this point. If you haven’t yet taken the plunge in purchasing some cryptocurrency, you may check out this Beginners Guide on How To Buy Cryptocurrency.
Short Term Forecast For Uniswap Price: Still Bearish Tendency
Although there has been a lot of positive news surrounding Uniswap especially in the DeFi exchange market, this has not reflected on the price. After reaching a monthly high of $22.51 on 6 July, the drop has been steep with UNI declining by well over 20% to the $17.10 levels of today.
A bearish thesis is currently playing out with further pressure on the price expected to take it down to $15.50-$15.80 levels.
A bullish scenario would invalidate this situation although that is appearing increasingly unlikely in the short term. The price could bounce from the $17 level all the way back up to the $20 mark. It could even begin a push for the $25 level which would be the next resistance point.
New Alpha version of UNI v3 should save costs and boost transaction speeds
Uniswap launched its Alpha version of Uniswap version 3 on its Ethereum layer two scaling solution. Uniswap had already launched on the L1 Ethereum mainnet for its Version 3 in May. Now the Decentralised Exchange has further announced an L2 deployment on Optimism with an Alpha launch.
Uniswap said that Optimistic Ethereum will be supporting an initial throughput of 0.6 transactions per second. Additionally, the protocol claims that it will be offering cost savings of up to ten times following this launch.
Uniswap expects transaction speeds to speed up considerably over the forthcoming months. Infrastructure and other factors will continue to be optimized. This scaling integration is chiefly aimed at providing low-cost and high-speed trading on the DEX with demand increasing considerably.
This further development should prove to be a boon for the Uniswap price over a long-term period. If you haven’t bought Uniswap yet, why don’t you check out these Best cryptocurrency brokers?
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Gerald Fenech
