Uniswap (UNI) was one of the best performers among top-cap cryptocurrency tokens in the previous 24 hours, outperforming some of the most popular cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB).
On September 15, the UNI/USD exchange rate increased 13.26 percent to a seven-day high of $25.68. Traders continued to bid higher on the pair as the session began on Wednesday, pushing its value up to $26.07 at one point, up more than 15% from the previous session’s open of $22.66.
Is there a market-wide recovery driving UNI gains?
The majority of Uniswap’s gains in the previous 24 hours appear to have resulted from a market-wide recovery.
For example, during the specified timeframe, Bitcoin, the benchmark cryptocurrency that has a large influence on the rest of the crypto tokens, climbed above $47,000 following a 4.85 percent gain on Tuesday. Meanwhile, Ethereum’s native asset, ETH, surged to $3,500, a 4.57 percent price increase.
Binance Coin, XRP, Dogecoin, Luna, and Chainlink all gained ground in the crypto market. In contrast, Solana’s native asset SOL fell 6.47 percent as a result of a denial-of-service disruption on its network.
Simultaneously, Cardano (ADA), one of Solana’s main competitors, fell by more than 1%.
Initially, the gains among the top tokens, including Uniswap, appeared to be aided by capital rotations out of the SOL and ADA markets.
In particular, Solana’s market cap has increased by more than 400% year to date as a result of its entry into the thriving nonfungible token (NFT) sector, giving traders a good chance to lock in interim profits. Furthermore, the network outage hastened the profit-taking scenario.
Solana mainnet-beta is experiencing intermittent instability. This began approximately 45 minutes ago, and engineers are investigating the issue.— Solana Status (@SolanaStatus) September 14, 2021
Cardano, on the other hand, sparked speculation due to its Alonzo upgrade, which transformed it into a smart contracts platform for the first time since its inception. Furthermore, its 2,500 percent year-to-date performance provided traders with ample opportunities to “sell the news” and secure profits.
UNI token owners control 9.15M MIR tokens.
The superior performance of Uniswap in the previous 24 hours was also influenced by speculation that holding UNI would grant them access to airdrop tokens.
Brendon Murray, content marketing manager at Boston-based blockchain analysis firm Flipside Crypto, cited Twitter user jr3225’s research in a recent note. According to the study, many UNI holders were unaware that they could receive 9.15 million MIR tokens from the synthetic asset platform Mirror Protocol via an airdrop in December 2020.
In comparison, LUNA token holders could receive more free MIR tokens than UNI token holders—MIR/USD has increased by 200 percent this year.
The report, which was released on Tuesday, coincided with the UNI price increase.
Technical Prospects for Uniswap
Uniswap’s most recent rally tested a support confluence formed by falling trendline resistance and the 38.2 percent Fib line ($26.093) of a Fibonacci retracement graph (drawn from a swing high of $42.89 to a swing low of $15.70).
Near the confluence, sellers took control, causing the UNI/USD to fall 4.59 percent to an intraday low of $24.50. Its next support level is a confluence of the 23.6 percent Fib line ($22.12) and the ascending trendline, which together form a Rising Channel.
Unless the pair reaches the Rising Channel’s upper trendline near $42.89, an interim bullish outlook calls for UNI/USD to break above $26.09 and move towards the next Fib levels ($29.30, $32.51, and so on).
Meanwhile, a bearish setup could see UNI/USD break below the Fib line of $22.12 and the Channel support, aiming for $15.70.