UNI is among those decentralized finance tokens that debuted with a bang but slowly rolled over to the bearish side on higher profit-taking sentiment.
The UniSwap exchange’s governance cryptocurrency plunged by another 5 percent on Wednesday, hitting an intraday low of $4 as of 0900 UTC. The latest sell-off came as a part of a broader correction trend that followed UNI’s 5,524 percent price rally to an all-time high at $8.59.
UNI/USD is consolidating sideways following its 50% correction. Source: TradingView.com
TVL
Simultaneously, the total value locked inside the UniSwap pool kept on increasing to new highs. According to data fetched by DeFi Pulse, the TVL surged to $2.12 billion on Wednesday, its highest to date, showing that more people are locking funds in the UniSwap pool.
The decentralized exchange has committed to rewarding its liquidity providers and users with UNI tokens until its supply exhausts at 600,000,000 units.
That serves as one of the main reasons UNI is still trading 2,500 percent above its debut rate. Traders prefer to speculate on the token for what it represents: the world’s leading decentralized exchange with volumes better than Coinbase and Binance.
And some of those speculators are already anticipating a rebound in the UNI market.
UNI Pullback Calls
A pseudonymous analyst, known by his first name Mac, said that he expects UNI/USD to fall further towards $3.5. But entering the first week of the final quarter, the pair would most likely rebound to the upside.
“UNI shorts are looking good,” he said. “The market is not bueno for bulls atm. Waiting for the first week of Oct to enter longs.”
UNI trade setup, as presented by MacnBTC. Source: TradingView.com
Another pseudonymous analyst with a history of posting accurate crypto market outlook also presented a pullback scenario for the UniSwap token. Nevertheless, he mentioned specific criteria before he enters any long position.
UNI trade setup, as presented by John Wick. Source: TradingView.com
“UNI is looking to retest the breakout,” the analyst noted. “These are usually even better R/R entries at the retest. If it reacts with a sign of strength its a buy with a stop at support.”
On a broader scale, the UniSwap token expects to stay inside the bias dictated by the overall cryptocurrency market trend. With uncertainty over the US election looming, and the second stimulus bill in pending state, almost all the bullish assets are anticipating sell-offs.
That may include UNI as well.