Thursday, April 18, 2024

Uniswap token price dips following launch of fee rewards program.

The price of Uniswap (UNI) has dropped 11.30% due to the “sell the news” event that occurred after the decentralized protocol turned on its fee distribution incentive. The summer of 2022 saw the plan to activate the fee distribution incentive, along with an update to the governance proposal on Saturday, February 24.

The price of Uniswap (UNI) surged unexpectedly on Friday, breaking out of a period of stability with a significant price jump. This move surprised many traders and came shortly after the Uniswap network implemented a new reward system for its community.

UNI open interest approaches $175 million with an upgrade to the Uniswap governance plan.

With the goal of “invigorating and strengthening Uniswap’s governance system,” the Uniswap decentralized network released the specifics of its new governance plan on Friday. The goal of the proposal is to improve the procedure in order to encourage intelligent, proactive, and active delegation.

The fee structure for the upgrade, if it is allowed, will reward holders of UNI tokens who have staked and delegated their tokens. The proposition will go to a vote if governance approves of it.

UNI open interest has surged to $174.4 million as a result of the excitement surrounding these possible sales, with Binance Exchange leading the way at $97.2 million, followed by Bybit and OKX exchanges at $40.7 million and $30.5 million, respectively.

As the Uniswap price increased by almost 50%, up to $3.07 million in short positions were liquidated against $1.78 million in long positions, in tandem with the spike in open interest.

Additionally, it has been reported that six hours prior to the proposed update being made public, over 500,000 UNI tokens—worth around $3 million at the time—were purchased.

Future pricing of UNI with the modification to the Uniswap governance plan
In the frenzy, the price of Uniswap surged over 50%, trading at $10.93 at the time of posting. The Relative Strength Index (RSI) continued to trend north, suggesting that further increases could be forthcoming. This was an indication of increasing momentum. With green flashing histogram bars, the Awesome Oscillator (AO) was also in a positive zone, increasing the likelihood of additional upward.

Increased buying pressure may cause the Uniswap price to break through the psychological $12.00 mark. The price of UNI can rise even further to retake the $12.49 high set on March 29, 2022. This would represent a 10% increase over the present levels.

Conversely, Uniswap’s price may decrease and revert to the area of consolidation below the 50% Fibonacci retracement line at $7.90 if UNI holders begin to book profits. The confluences of the 200-, 100-, and 50-day Simple Moving Averages (SMAs), which indicate a high buyer congestion level, around the $6.00 psychological level may offer support for the DEX token below this base.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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