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Analysis

Uniswap Technical Analysis: Will $UNI Recover?

Tags

Editor's Choice

Reading time

2 mins
Last update


Author

Rickie Sanchez

Tags

Editor's Choice

Reading time

2 mins
Last update


uniswap

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On Wednesday, April 10th, the US Securities and Exchange Commission (SEC) issued a Wells Notice to Uniswap Labs, the main developer behind the decentralized exchange Uniswap. A Wells notice is a formal notification that the SEC is considering legal action against the company.

In just one hour following the news, UNI’s price fell 10.8%, dropping from $11.21 to $10.00. At the time of writing, UNI is down around 16-17% and is currently trading at $9.315.

Why This Matters?

This news has caused a lot of concerns in the cryptocurrency industry, as Uniswap is seen as a symbol of decentralized finance (DeFi).

The DeFi sector operates without the involvement of traditional financial institutions like banks, which is why the SEC is making efforts to block and stop these kinds of transactions.

Uniswap provides a platform for people to trade cryptocurrencies directly with each other. Despite the potential risks from regulators, the company chose to stay in the US.

The SEC’s move is seen as a step against DeFi, and the crypto community is showing support for the decentralized exchange while criticizing the SEC; they believe that clear regulations are needed for the crypto industry to really succeed in the US.

UNI Technical Analysis

When UNI recently reached its highest peak in March, it failed to bounce back from its key support levels, forming new lower highs.

According to UTB’s technical analyst, Ray, it is an indication that UNI is not doing well, even with the pre-Bitcoin halving surge.

Overall, if UNI manages to close below the key support horizontal trendline, it will serve as strong resistance in the future.

Final Thoughts

With the news of the SEC issuing a Wells Notice to Uniswap Labs, how do you see this impacting the future of the platform? And will the price of the UNI token rebound in the long run?

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Rickie Sanchez

About the Author

Rickie is a seasoned blockchain and cryptocurrency enthusiast with extensive experience dating back to late 2017. His crypto journey has taken him across the globe, where he has worked with clients from diverse backgrounds. Notable collaborations include ghostwriting for a media startup, contributing to a blockchain blog based in Zurich, managing a weekly newsletter for a client in Japan, and serving as a token review writer for a crypto blog headquartered in the Netherlands. He will not rest until every individual is empowered with the knowledge and insights needed to thrive in the crypto landscape.