- Uniswap’s native cryptocurrency UNI posted 10% gains in the last 24 hours
- Bitwise floated new institutional crypto funds for AAVE and UNI
JAIPUR (Coinchapter.com) – UNI, the native cryptocurrency of the DeFi ecosystem’s largest decentralized exchange (DEX) Uniswap, underwent a 10% plus rally during the wee hours of Wednesday’s London trading session.
In a move that mirrored ETH’s London challenging fork-led rally, supercharged buyers pushed prices up from $20.74 to $23.714. The DEX crypto-asset flipped a crucial resistance at $23.04 into support. The same that limited upsides since July 7.
The Bitwise Factor Boosting Uniswap
Bulls bought the news surrounding Bitwise launching institutional crypto funds for UNI and AAVE, decentralized lending protocol Aave’s native token. The crypto asset manager boasts of an AUM worth $1 billion. And will invest directly in UNI and AAVE through the newly formed Bitwise Uniswap Fund and Bitwise Aave Fund.
Both funds are an extension of the Bitwise DeFi Crypto Index Fund. The same that Bitwise floated in February this year to offer DeFi investment opportunities to institutional investors. They include RIAs, financial advisors, multifamily offices, high net worth individuals, hedge funds, etc.
“Uniswap and Aave are the two largest DeFi protocols in our DeFi index, and are the largest decentralized exchange and decentralized lending protocol in the world, respectively. Bitwise’s vision is to make the opportunities emerging in crypto more accessible, and we’re thrilled to take another step with the world’s first Uniswap and Aave investment funds.”said Matt Hougan, CIO of Bitwise.
And The Technical Factor…
The above update played well in favor of the bulls. But a technical setup was already screaming buy signals since August 1. With the liftoff from the $14 bottom on July 21, the UNI/USD exchange rate fulfilled a double bottom pattern, culminating in the pair tapping $23 on Sunday.
In technical analysis, the double bottom formation looks like the letter “W.” Traders consider the two lows in the W as the support level. When printed by a particular asset, the pattern signals a reversal and the beginning of a potential uptrend.
And are pretty rare to form, as observed by Twitter-based trader Jonny Moe for UNI/USD.
Although bears have taken over the charge from bulls, owing to overbought conditions (RSI readings at 65.44), the current technical setup augurs bullish moves ahead for the top DEX asset.
A close above the $24.43 long-term resistance formed on June 15 could open the gates towards a rise to $29.72 (161.8% Fibonacci extension level). However, the said scenario will play out only if buyers can reverse the growing bearish trend.
According to Jonny Moe, UNI bulls have the potential to go higher than the discussed target.
Pattern target is $32, horizontal resistance $25.5-$30he replied to a query asking for a “reasonable target”
But if the selloff catches momentum, as it could due to MACD indicating an impending bearish crossover, a retracement below $21.67 is on the cards. Losses could accelerate down to $20. Owing to the break below the 20-day exponential moving average (EMA) wave.