- The Uniswap price sets a trap for traders after a short-term breakout of the lower trendline of the dominant symmetrical triangle.
- The best 3-day gain since May hasn’t been picking up steam despite the improvement in the cryptocurrency complex.
- UNI is removing 100 tokens as regulatory oversight increases in the decentralized finance (DeFi) space.
The rebound in the Uniswap price has slowed over the past four trading days, showing no progress despite Bitcoin’s continued rally from the July 20 low, keeping the altcoin folded in a symmetrical triangle. Although UNI has become a trap for traders, the bearish outlook persists until UNI can announce a daily close above the upper trendline of the triangle.
Uniswap blacklists synthetic and tokenized shares
In response to increased scrutiny from governments and regulators, decentralized finance platform Uniswap announced on Friday that it will restrict access to 100 cryptocurrency tokens in a trading app. Tokens include synthetic assets that track the prices of major stocks like Tesla and Facebook, and exchange traded funds (ETFs) that mimic certain stock indices like the NASDAQ 100.
Other limited synthetic tokens have been created to track gold and oil futures, Japanese yen, Korean won, and cryptocurrencies such as Bitcoin. Overall, it appears that the de-listed instruments are those that could be classified as securities by the regulator.
The announcement follows a direct comment from US Securities and Exchange Commission (SEC) Chairman Gensler on July 21 about cryptocurrency projects that use tokens to reflect securities activity. He said that “platforms – whether in a decentralized financial space or a centralized financial space – are subject to securities laws and must operate under our securities regime.”
Make no mistake, regulators and governments are concerned about the new financial frontiers introduced by the DeFi space. They raise the temperature, causing a crush to avoid falling into the regulatory nightmare.
Uniswap price pending model release for trend detection
Uniswap’s price, like other altcoins, has struggled to create a sustainable supply to overcome the technical hurdles depicted in the charts. One of the discordant levels is the 50-day simple moving average (SMA). The indicator prevented the continuation of the rally in June-July, as a result of which UNI fell by almost 40%. Likewise, the moving average rejected the digital token yesterday and is doing the same today.
The secondary obstacle to the success of the Uniswap price is the upper trendline of the symmetrical triangle starting after the May crash. The trendline also puts downward pressure on a digital asset, especially in the case of a continuation pattern.
The downtrend pattern begins with a fresh daily close below the lower trendline of the triangle, which is currently $ 15. To provide confirmation, daily close is below the Jul 21 low of $ 14.02. The measured movement of the triangle is 56%, predicting a Uniswap price target of $ 6.60, which would push the UNI below the September 2020 high of $ 8.67.
In the work of Edwards and Magee, they suggest that 75% of the symmetrical triangles are continuation patterns and the rest are reversals. Thus, a downward resolution of the formation is a high probability event to be expected for the Uniswap price.
Daily chart UNI / USD
If the Uniswap price manages to remove the technical constraints of the 50-day SMA and the upper trendline of the triangle, UNI market speculators may consider moving towards the measured target price of a $ 32.16 up move.
The move in Uniswap’s price from the July low began with a huge rebound. However, this was not supported by yesterday’s reversal and distribution sign, suggesting that UNI market operators are using force to cut or close positions. Without a doubt, the words of the chairman of the Securities and Exchange Commission have a moderating effect on the price of Uniswap. However, the objective strength of the symmetric triangle model will provide a better understanding of UNI’s intentions for future trends.