Regulators Ignore The Future, Again, At Consensus 2018 Enforcement Panel

By Aubrey Swanson·13 November 2020·2 min read

Key Points

Uniswap's governance token surged 11% over the past day, reaching $3.30 against the dollar.
The token gained 5% in the last hour, signaling continued momentum that traders say could push prices higher

Uniswap's governance token surged 11% over the past day, reaching $3.30 against the dollar. The token gained 5% in the last hour, signaling continued momentum that traders say could push prices higher in coming days. But headwinds loom. The liquidity mining incentive program wraps up this month, freeing roughly $1.2 billion worth of UNI tokens to flow into markets, a move that could spark selling pressure and trigger the volatility traders fear.

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The price action over recent weeks tells a story of swift recovery. Prices bottomed at $1.76 earlier this month. From there, UNI has climbed 80%, with most gains arriving in the past week as liquidity mining rewards drew in new capital. The token jumped 35% over the past seven days.

On the daily chart, UNI trades near the top of an ascending channel that formed since November began. The upper edge caps prices at current levels. Bulls would need to punch through this barrier to target $4.00. If momentum falters, sellers could push prices back to the channel's midline or lower, with the 20-day moving average at $2.60 providing the next backstop before the $1.76 floor.

The four-hour view favors buyers for now. Prices sit above both the 20-day and 50-day moving averages. An ascending trendline that's held since mid-October provides further support beneath the current price. The relative strength index trades at 65, approaching overbought conditions but with room to run higher.

The critical level for bulls sits at the 20-day moving average, now $3.03. If sellers breach this point, UNI would test the 50-day average near $2.70 and potentially the 100-day at $2.40. Below the ascending channel's lower boundary, the $1.76 supply zone marks the line in the sand.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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