Uniswap was one of the strongest tokens in July on strong fundamentals
The Uniswap protocol proposes a new foundation to support growth
UNI is holding a key level, but bear weakness could heighten
After a strong rally recently, Uniswap UNI/USD bull run is weakening. A more than 3.40% drop in the last seven days illustrates the weakening momentum. However, UNI has kept a key level, sending mixed signals about the next potential move.
Uniswap’s gains in July were connected to improved sentiment in the crypto sector. The price surge, in particular, came from the projected Ethereum merge. That boosted DeFi tokens such as Uniswap. Another development in the month was the listing of the token on Robinhood. UNI hit a high of $9.8 on July 28 following the monthly rally. The price was from a low of $4.0 at the beginning of the month.
The latest development was the creation of the Uniswap Foundation. Announced in early August, the foundation would support the growth of the protocol. It will champion the creation of a $60 million fund to fund various projects. Uniswap creator Hayden Adams expects the foundation to build a protocol that “thrives.” The development is yet to cause any impact on UNI but underlines the protocol’s long-term map plan.
UNI holds $8.4 support intact despite MACD crossover
Source – TradingView
From the technical outlook, the MACD line crossed below the signal line. The crossover comes after UNI consolidated and weakened slightly above the $8.4 support. The cryptocurrency has also maintained the uptrend in a system of higher highs and higher lows.
Concluding thoughts
The MACD crossover sends mixed signals for UNI traders. However, as long as the token keeps $8.4 support, it has a chance to go higher. Investors should watch for bullish signs. If the token crashes below $8.4, that will be set on course for further correction. The next level is $6.5 and $5.6.
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