Key Insights:
- UNI price has been stuck in a narrow range for more than a week.
- Uniswap has announced the onset of its mainnet.
Before December, buyers have maintained their total control in Uniswap (UNI) crypto. At the beginning of December, the momentum was shifted to the bears’ hand which resulted in a strong selling pressure.
However, the momentum was halted near the previous support zone of $9. Furthermore, the Uniswap price has been experiencing a consolidation phase for the past few days.
UNI Price Behavior After Mainnet Onset accouncement
In the 24 hours following Unichain’s mainnet launch, the price of UNI tokens increased by 5%. Uniswap Labs aims to provide DeFi application capabilities that are quick and inexpensive.
As a result, investor sentiment toward Uniswap improved, and the price of the token rose above recent market drops.
Unichain, a new Ethereum Layer 2 rollup for DeFi applications, was unveiled by Uniswap Labs. Unichain significantly improves on-chain market efficiency by providing fees 95% lower than Ethereum L1 at one-second block time speeds.
Before its official launch, Unichain generated a lot of usage during the testnet period, carrying out 14.7 million smart contracts and 95 million transactions.
Uniswap Price Analysis Over 1-D Timeframe Highlights $9 Mark
Uniswap Crypto was trading at $9.45 at press time which has 0.78% over the past 24 hours. The market capitalization was $5.67 Billion and the 24-hour trading volume was $241.62 Million.
Based on the technical chart, the bearish momentum has halted near the support zone of $9. Furthermore, the price has been climbing slowly which might gather bullish momentum.
Suppose the price gains bullish momentum in the support zone, it could be a bullish sign. Once the price surpasses the 200-day EMA, buyers might be confident and lead the bullish rally further. If the price holds over the $10 mark, a strong bullish trend can be anticipated.
Conversely, if the UNI coin price slips below the $9 mark, buyers might panic. If the price loses this level, sellers may drag down the price to another support level of $6.6.
Suppose the Uniswap crypto price holds below this level, most traders and investors might prefer to book profit. Here, profit booking could lead to a strong selling pressure.
MACD and Signal line were wandering in the negative territory and displayed a bullish crossover. The histograms have turned to green which might attract buyers.
RSI has triggered a golden crossover with the RSI-based moving average which showcases the bullish forecasts.
UNI Price Action Merits Caution According to These Indicators
The recent developments surrounding Uniswap suggest a potential shift in market dynamics. Despite experiencing a consolidation phase and bearish momentum near the support level of $9, the announcement of the mainnet and the launch of Unichain have revitalized investor sentiment.
Technical indicators, such as the MACD and RSI, are signaling bullish momentum, which could pave the way for a price rally if it surpasses the 200-day EMA and holds above $10.
However, traders should remain cautious, as a drop below the $9 mark could trigger selling pressure and a possible descent to $6.6.
Overall, while the outlook appears cautiously optimistic, market participants should closely monitor price movements and key support levels to navigate potential volatility.
