- Uniswap’s price, which defines the big symmetrical triangle, has diverged from the strength of other DeFi tokens in recent weeks.
- UNI ended last week with its biggest weekly decline since the May crash – 21.20%.
- Grayscale Investments and CoinDesk Indexes are partnering to launch the DeFi Fund and the DeFi Index.
The Uniswap price fell 30% after the 200-day test of the simple moving average (SMA) on July 7. The cryptocurrency is now just above the bottom trendline of the symmetrical triangle, rising to a low on May 23rd. The near-term outlook for the DeFi token is mixed as UNI broke away from the bullish push behind the DeFi space after the June 22 low and took the form of a crypto bear market. Stock speculators should expect a test of the May 23 and June 22 lows.
Grayscale and Coindesk Merge to Meet Demand for DeFi Assets
Grayscale Investment, the world’s largest digital currency asset manager, and CoinDesk Indexes, a subsidiary of CoinDesk Inc., have launched a new diversified stock product and the CoinDesk DeFi Index.
The new fund will directly expose investors to cutting-edge DeFi protocols through a market capitalization-weighted portfolio designed to track the new CoinDesk DeFi Index. The new fund is Grayscale’s fifteenth investment product and second diversified fund offering.
According to Grayscale Investment CEO Michael Sonnenschien, the new launch is a continuation of Grayscale’s commitment to creating opportunities for investors to harness new opportunities in the digital asset system.
Grayscale continues to focus on creating opportunities for investors to access exciting new parts of the digital asset ecosystem.
The fund is now open for daily subscription to qualified individual and eligible institutional investors.
Meanwhile, the CoinDesk DeFi Index aims to provide a broad benchmark view of DeFi protocols, and the methodology includes DeFi liquid assets based on market capitalization weighted. As of July 1, some of the largest assets in the index include Uniswap (UNI / USD) at 49.95%, Aave (AAVE / USD) at 10.25%, Composite (COMP / USD) at 8.38%, and Curve (CRV / USD) by 7.44%.
For CoinDesk Indexes, “the collaboration gives investors the data and tools they need to access decentralized finance in their portfolios.”
Uniswap price shows traders are not active at current levels
Uniswap price has been creating a symmetrical triangular setup for several weeks since the May 23 low. The turn formation developed half the time above the 200-day SMA and half below the strategically important moving average. From time to time, UNI has suppressed bearish trends in the cryptocurrency market in order to participate in the rally in prices fueled by renewed interest in the DeFi space.
The measured displacement of the symmetrical triangle is greater than 55%, indicating significant movement after the pattern is resolved. On the other hand, the Uniswap price target is $ 6.39, breaking the 78.6% Fibonacci retracement from the UNI rally that began in late November 2020 to $ 11.01 and the 2020 high reached in September 2020 at $ 8.66.
The most realistic decline, if the symmetrical triangle resolves to the downside, would be a 78.6% retracement at $ 11.01, a 25% loss from the pattern’s bottom trendline.
A daily close below the trendline below $ 14.70 would confirm a shutdown and push the Uniswap price to a June 22 low of $ 13.90 and then to a May 23 low of $ 13.01. If the bearish sentiment in the cryptocurrency market continues, UNI will risk testing the 78.6% retracement level at $ 11.01.
Daily chart UNI / USD
The higher exit from the symmetrical triangle presents a more challenging issue for the Uniswap price as the 50-day SMA falls near the triangle’s upper trendline at $ 21.50. A daily close above $ 21.50 will confirm a breakout, but UNI will face strong resistance from the 200-day moving average at $ 24.30. Once the price of Uniswap exceeds the long-term moving average, it could hit the $ 34.03 target.
For several weeks, DeFi cryptocurrencies have shown a big rally from the June 22 low, pushing the Uniswap price up to the 200-day SMA to $ 23.45 and a gain of about 65%. However, the bearish pace of the cryptocurrency complex bridged the gap and placed UNI near the bottom trendline of the symmetrical triangle, giving it a potential 25% fall.