Decentralized finance (DeFi) and trading have been domains in which Uniswap has long held a prominent position. The recent whale accumulation in this network also indicated its market dominance in the decentralized finance sector. Also, the price action in the daily UNIUSD price suggests a buying pressure backed up by the surge in the altcoin market.
Uniswap v4 Knocks
In recent days, the wale’s accumulation in UNI suggests an ongoing development of the v4 Uniswap project, which might enhance the system. Moreover, the Uniswap team might introduce ‘hooks’ with the update, which might be a positive confluence factor for the token.
Under hooks, users can execute contracts in various states. With more plugins, users can have higher flexibility and options for customization under the liquidity pool. As a result, it might enable some fees, like dynamic fees, under the advanced order execution system.
As of now, Uniswap V4 might come as a singleton contract system, where all Uniswap liquidity pools might reside under a single smart contract. As a result, the gas fee might be reduced significantly, with an increased efficiency in various pools.
UNIUSD Technical Analysis
In the daily chart of UNIUSD, the overall market momentum is bullish, starting from violating the August 2023 low for the first time. The price moved down with corrective pressure after making a new high at the 7.13 level but failed to hold the bearish pressure.
In the current price, the dynamic 20-day EMA is working as a crucial support, while the 100-day SMA is a major support. In that case, any intraday selling pressure could continue the bullish trend, targeting the 8.08 level. In the aggressive approach, an immediate buying pressure above the 7.13 level might offer a long opportunity. However, a downside correction might happen towards the 6.36 level, from where a bullish rebound could offer another long opportunity.
On the bearish side, a sharp bearish pressure with a daily candle below 5.59 could extend the downside momentum toward the 4.47 support area.