Uniswap’s UNI Token Hits 2-Year High Amid Crypto Market Correction
The Key Points in Brief
UNI, the governance token of Uniswap, recently reached a two-year high. This increase is due to a number of factors, including a proposal to reward UNI holders who have delegated and staked their tokens. Despite the current bull run, there are also indications of a possible price correction.
What caused the rise of UNI?
The recent surge in the UNI price to its highest level since January 2022 occurred during a general correction of the prices of many leading crypto assets. One trigger was a snapshot poll about a proposal to reward UNI holders from the revenues of Uniswap’s decentralized exchange (DEX).
In a proposal presented on February 23, Uniswap outlined plans to change the protocol’s fee mechanism to benefit UNI token holders who have delegated and staked their tokens. This upgrade is intended to encourage UNI token holders to participate more actively, engage in discussions, and make informed decisions about the future of the protocol.
UNI sees gains, but…
At the time of reporting, UNI was trading at $15.04. According to CoinMarketCap, the altcoin traded above $17 for the first time since January 2022 before falling back to the $15 price range. Despite the price drop, demand for UNI remained high.
An evaluation of the token’s momentum indicators on a 24-hour chart showed that buying activity exceeded selling pressure. The Relative Strength Index (RSI) and the Money Flow Index (MFI) stood at 76.16 and 66, respectively, at the time of reporting, suggesting that buying pressure persisted despite slight price declines in the past 24 hours.
Realistic or not, here is UNI’s market capitalization in BTC terms
Despite UNI’s price increase in recent weeks, the Chaikin Money Flow (CMF) has shown a downward trend, creating a bearish divergence. This indicator measures the money flow into and out of an asset. When a bearish divergence occurs, it indicates the possibility of a reversal or consolidation of the asset’s price.
Our Assessment
The rise in the UNI price is a positive sign for the holders of these tokens and shows the potential of governance tokens in decentralized exchanges. However, it is important to keep an eye on market indicators and consider possible price corrections. As always, invest only what you are willing to lose and do your own research.
Sources: Abiodun Oladokun, Ann Maria Shibu, CoinMarketCap
| Symbol | UNI |
| Coin type | Alt Coin |
| Transaction Speed | High |
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