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bitcoin
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binancecoin
BNB (BINANCECOIN)
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solana
Solana (SOLANA)
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ripple
XRP (RIPPLE)
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Shiba Inu (SHIBA-INU)
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pepe
Pepe (PEPE)
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bonk
Bonk (BONK)
$0.000013 -2.14%
bitcoin
Bitcoin (BITCOIN)
$103,339 -1.97%
ethereum
Ethereum (ETHEREUM)
$3,483 -1.56%
binancecoin
BNB (BINANCECOIN)
$974.51 -0.61%
solana
Solana (SOLANA)
$160.57 -3.53%
ripple
XRP (RIPPLE)
$2.43 -4.03%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000010 -1.77%
pepe
Pepe (PEPE)
$0.000006 -2.03%
bonk
Bonk (BONK)
$0.000013 -2.14%
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Uniswap Price Outlook: Why UNI Could Rally to $10 Soon

Highlights:

  • Uniswap is an intraday correction after a strong 24-hour rally
  • Despite the correction, Uniswap has found strong support at $8.17
  • Rallying off this support could send Uniswap to prices above $10 

While the broader cryptocurrency market is sending mixed signals intraday, Uniswap is gaining strongly. In the last 24 hours, Uniswap has rallied by 23.68% to trade at $8.64. This brings its total gains for the week to 67%. A surge in trading volumes has also accompanied the rising price momentum. In the last 24 hours, Uniswap trading volumes have shot up by 574% to stand at $3.45 billion. 

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Such a surge in trading volumes at a time when the price is rising points to growing investor interest. There is a strong chance that the price will go even higher in the short to medium term. These price and volume dynamics for Uniswap are influenced by a couple of internal factors that could play a role in pushing the price higher going into the future.

Governance Proposal Likely to Send UNI Higher

One of them is the proposal that is set to change how Uniswap’s native token, UNI, captures value. Under the proposal that has come from the Uniswap Foundation and Uniswap Labs, trading fees would not go exclusively to liquidity providers. Instead, a portion of it would be shared with the Uniswap protocol itself, and later with the token holders as well.

The proposal also calls for the introduction of a more structured token burn mechanism. A part of the new structure will be a one-time burn of 100 million Uniswap tokens, followed by periodic burns aimed at making UNI a deflationary token.

Another aspect of the proposal is governance consolidation. Under the proposal, the Uniswap Foundation and Uniswap Labs will work more closely to drive ecosystem growth. The idea is to allow for more coordinated decision-making, and by extension, development of the protocol. The proposal also includes the introduction of aggregator hooks and other features that are more aligned with developers.

The idea is to increase liquidity, and by extension, increase the amount of value captured in the Uniswap protocol. If the proposal is implemented, particularly the fee split of 0.05% of trading volumes, Uniswap could achieve token buybacks worth $38 million a month. This is a big deal as it could help significantly shrink the amount of Uniswap tokens in circulation. 

 The implication in the short term is that it could add to the FOMO that has already built up around UNI. That’s because investors associate token burns with token scarcity and the expectations of more upside. More long-term, it creates an environment where Uniswap could outperform most altcoins and achieve significant value growth going into the future. 

Macro Trends Support UNI Could Rally to $10

Besides the internal dynamics, Uniswap stands to benefit from an improving macro environment. The US Federal Reserve recently cut rates and announced the end of QT. The recent government shutdown, the longest in US history, has also come to an end. This has created the perfect environment for money to start flowing into risk-on assets such as cryptocurrencies.

With the recent proposal aimed at making Uniswap highly deflationary, it could attract a sizeable amount of the incoming liquidity. This puts it in pole position for even more gains compared to what it has done in the past week.

Technical Analysis – Uniswap Finds Support After Minor Correction

After a strong rally, Uniswap has been in a minor correction intraday. However, Uniswap appears to have found strong support at $8.17, and bulls are regaining control. If bulls sustain momentum, the key level to watch for Uniswap will be the $9.5 resistance.

UNI
Source: TradingView

A rally through this resistance could send Uniswap to prices above $10 in the short term. However, if there is a market correction and Uniswap drops below the $8.17 intraday support, then a correction to $5.8 in the short term is possible.

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