Uniswap Price Prediction: UNI Drops More than 7% Despite BNB Chain Launch
The implementation of Uniswap Protocol v3 on BNB Chain is currently operational after winning the backing of a substantial majority of 66% of voters in February.
The decentralized exchange Uniswap has officially opened on Binance's smart contract blockchain, BNB Chain. This decision was taken after more than 55 million UniSwap UNI token holders endorsed a governance proposal by 0x Plasma Labs to install Uniswap v3 on BNB Chain. The goal of this proposal was to broaden Uniswap's reach and encourage further growth and adoption of DeFi.
Uniswap had faced challenges due to high fees on Ethereum's L1, but by expanding to additional DeFi chains, it could address this issue. With the deployment of BNB Chain, users of the DeFi protocol can now trade and exchange tokens with reduced transaction fees.
This is expected to lead to increased user growth, cheaper costs, and access to new geographic markets, which could have a positive impact on Uniswap price prediction in the long term.
However, despite the benefits of this deployment, Uniswap's native token (UNI) has not seen any positive impact yet. As of Wednesday, UNI was down more than 7%. It remains to be seen how the market will react to the expansion onto the BNB Chain and whether this will lead to a positive trend for UNI's price.
Uniswap price prediction remains uncertain in the short term, but in the long term, this expansion could lead to more opportunities for growth and development.
Uniswap Price Prediction
At the time of writing, the price of Uniswap is $5.90 USD, with a 24-hour trading volume of $123,727,540 USD. In the last 24 hours, Uniswap has down 6.78%. UNI is currently ranked #18 on CoinMarketCap, with a market cap of $4,500,611,064 USD. There are 762,209,327 UNI coins in circulation, with a maximum supply of 1,000,000,000 UNI coins.
Source: CoinMarketCap
Uniswap Price Prediction: Daily Chart
Ecosystem development often leads to an optimistic view of the native asset, but in the case of Uniswap, the reverse occurred, as risk aversion surrounding financial markets weighed on the crypto market. At the time of writing, the Uniswap price was trading at $5.82, down more than 8% on the day.
The price drop might have been caused by adjustments following the unexpected increase in the value of UNI. Uniswap's price has risen by more than 15% in the previous four days, approaching the important resistance level of $6.57.
As it approaches the immediate support level of $5.49, the altcoin is showing a bearish perspective, which would be realized if the cryptocurrency fell below the important support level of $4.94. This would cause the DeFi coin to fall below its December 2022 lows.
But, if the Uniswap price recovers and manages to convert the important resistance level of $6.57 into support, recovery may be in the cards. The bearish thesis would be demolished, and UNI would have a chance to reclaim its year-to-date high of $7.38.
The RSI is at 43 which indicates that UNI price is in between a transition from an oversold market to a Buy market.
Source: TradingView
Uniswap Price Prediction: Hourly Chart
The four-hour Uniswap price study declares a positive lead since the price has continually improved. An increasing trend has been noted in the last few hours, with the price rising to $6.21. Since yesterday, the price has risen dramatically as the bullish trend has grown stronger. On the four-hour price chart, the moving average is $6.30 higher than SMA 50.
The relative strength indicator is somewhat overbought at 44.64, indicating that the trend may reverse shortly, and investors should use caution while investing. The Bollinger bands are widening and rising, which explains the rising purchasing sentiment. The top limit is $6.65, while the lower limit is $5.52.
Source: TradingView
Uniswap Onchain Analysis
Binance's DeFi chain now supports roughly 555 protocols with a total value of $5.02 billion. The total value locked (TVL) on Uniswap across all versions is slightly less than $3.5 billion. The total market cap including all the versions of Uniswap is around $4.25 Billion.
Right now the Marketcap to TVL ratio stands at 1.21which is considered to be a good MCap/TVL ratio as a lower ratio means a high potential that investors could invest in the project heavily.
Source: Defillama
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