Uniswap Is Down 14% in Seven Days: Here’s Why

Uniswap is down 14%, currently trading at $6.37; the UNI/USD opened the day at $6.18, reaching a high of 6.40 and a low of $6.17. Today it has risen by 0.32%. Uniswap (UNI) price has risen by about 10% in the last two days.

One of the leading decentralized exchanges, Uniswap, has recently stirred the cryptocurrency industry, particularly in the decentralized finance (DeFi) sector. Following a negative week, the UNI/USD has seen some increased bullish activity in the last two days.

As a result, despite no significant news releases involving the UNI coin, the Uniswap decentralized exchange has been buzzing with activity.

Increasing Tweeter Activity

Uniswap sees increased activity on the DEX platform and increased conversation rates on Twitter, one of the most popular social media platforms, particularly for cryptocurrencies. Uniswap has generated the most Twitter conversation since its launch two years ago.

The upcoming Ethereum merger has sparked a lot of buzz on social media. It compelled protocols to choose whether or not to adopt the Proof-of-Stake version. Furthermore, it has caused consternation in the decentralized financial community.

We are eagerly awaiting The Merge ?

It's an important step in scaling web3 and immediately reduces the environmental impact of Ethereum. Rest assured, Uniswap + https://t.co/liqYXu7ZDA will continue to work seamlessly through this transition.

— Uniswap Labs ? (@Uniswap) August 25, 2022

Some speculate that after the Merge, there may be some Proof-of-Work forks of Ethereum. Some protocols, such as Chainlink, are determined to keep their users within the Ethereum ecosystem by refusing to support any PoW fork versions of ETH after the Merge.

Uniswap also confirmed in a tweet on August 25 that it would continue to operate normally during the transition. As a result, despite the current sell-off as the platform advances, the short-term prospects of UNI/USD remain optimistic.

Uniswap and NFTs

Scott Lewis, Uniswap’s Head of NFT Product, commented on a tweet from @Scott eth on August 23. Scott Lewis stated on social media that the company has been in contact with several non-fungible token (NFT) loan protocols to financialize NFTs.

According to Lewis, the company’s goal is to solve two major issues in the NFT industry. Lewis was eager to discuss the advantages of Uniswap’s market participation, but he was hesitant to reveal who was taking part. With its June acquisition of NFT aggregator Genie, Uniswap has recently made significant progress in the NFT sector.

Genie claims to save consumers time and money by allowing them to search for and trade NFTs across multiple platforms. Uniswap appears to be attempting a similar ruse with NFT loans, offering increased liquidity and more accurate data. Uniswap’s goal is to incorporate NFTs into our products, beginning with the Uniswap web app. Some saw the change as a step toward a more decentralized financial future.

Other users questioned Uniswap’s interest in NFT financialization, claiming

it was motivated by a desire to profit from liquidations. If Uniswap can achieve the same feat with NFT liquidity, the company may become a dominant force in the market, benefiting the UNI/USD exchange rate.

Uniswap Is Down 14% – Technical Outlook

The UNI/USDT pair trades sideways, maintaining a narrow trading range of $6.45-$5.65. The upward trendline supports the uptrend in UNI at the $5.70 level. A break above the $6.45 level has the potential to extend the upward trend until the next resistance level of $7.40.

UNI/USDT Price Chart – Source: Tradingview

On the downside, UNI’s immediate support stays at $5.65, and a break under the level could lead the UNI price towards the $4.85 level. Considering the technical outlook, consider taking a sell position under $5.65 and vice versa. Good luck!

Find out the latest Uniswap price on CoinCodex.

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