Cryptocurrencies have been suffering from increased volatility since the bear took over. For example, the price of the fledgling cryptocurrency Bitcoin crashed to a low of $18,363 on Oct. 13 and then reversed to $19,354 today. Unlike the other trailing top coins, Uniswap’s native token UNI marks higher profits. Although its price touched $5.50 when BTC crashed Thursday, UNI added more than 14% after the day and claimed a high of $6.49.

At the time of writing, the value of the token is around $6.20, up 0.96% in the last 24 hours. Uniswap’s market capitalization also indicates an uptrend, which means that the crypto winter started to ignore the project. Its capitalization has increased to $4.7 billion, which represents a gain of 0.24%.

Financial indicators MACD line and RSI suggest bearish divergence

In line with the daily price analysis, UNI against the USD shows an uptrend ahead. The price actions form a high-low pattern that indicates an uptrend for the token. As recent price movements show, investors did not miss any opportunities and connected with all the swing lows. Likewise, Uniswap ended its pullback phase below $5 in the last week and now seems to find resistance above it. The expected price range for the token in October remains between $5.3 and $7.

In the face of positive developments within the UNI network, the moving average convergence divergence line (MACD), an oscillator used to indicate market trends, is currently pointing towards the token’s bearish signal and crosses the line. Likewise, the Relative Strength Index (RSI) shows a bearish divergence as its peak continues to fall towards the 50 zone.

The UNI price is currently trading at $6.15. | Source: TradingView.com UNIUSD price chart

Uniswap will be implemented in zkSync for a cheaper rate and improved security

UNI is the governance token of the Uniswap decentralized exchange, which allows users to trade and sell cryptocurrencies using smart contracts. It appears that users and organizations are pushing for privacy in the industry, driving adoption and positively affecting pricing. For example, on Wednesday, October 12, 2022, Coin Center, a cryptocurrency think tank, filed a lawsuit against OFAC for restrictions against Tornado Cash, a privacy mixer (decentralized cryptocurrency distributor). In return, almost the entire market reacted by turning green when the news spread.

In particular, today’s announcement of the Uniswap platform could become a catalyst to further increase the price of the token. The Uniswap exchange has stated that it will build on zkSync to improve privacy and security.

zkSync uses novel technology, also known as ZK Rollups, to enable faster transactions with minimal gas cost. The company decided to implement privacy-focused layer two after completing a governance vote. Offering a minimum fee without compromising security will attract more users and speed up network activity.

zkSync’s parent company, Matter Labs, commented that this move would bring in new users. Also, the lower network fee than Ethereum will make the platform more attractive. The company noted in a statement;

There is significant value in Uniswap being available in an EVM compatible ZK Rollup. The early implementation of zkSync helps cement Uniswap’s place as the number one DEX and thought leader.

Therefore, with the launch of zkSynce on the mainnet within the next six weeks, investors’ wallets can benefit from the growth of the project. Furthermore, the token could enjoy resistance above $7 in the coming days, something that is difficult for investors to deal with.

Featured image from Pixabay and chart from TradingView.com



This post Uniswap sellers stall but RSI develops bearish divergence

was published first on https://www.newsbtc.com/analysis/uni/uniswap-sellers-stop-but-rsi-develops-bearish-uni-price-divergence/

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