Key Takeaways:
- Uniswap V4 version upgrade got into some muddy waters due to licensing issues.
- UNI price forms a bullish pattern.
PATNA (CoinChapter.com) — Decentralized crypto exchange Uniswap courted controversy after the release of its V4 version. The platform released its draft code on June 13, stating its intention to build V4 “in public, with open feedback and meaningful community contribution.“
However, the move attracted criticism after users noted that the source code was available via a Business Source Licensing (BSL) license. In detail, the license allows using the code for development and other non-production work, like testing.
For production-related work, users would require a commercial license from Uniswap. The DEX came under heavy fire from users, who asked the exchange to be honest about the license. Uniswap developers defended its choice for V4’s BSL license via a YouTube video.
Uniswap’s Engineering team lead, Noah Zinsmeister, stated that the BSL license helped initial adopters exclusive rights for a short time while promoting innovation.
Zinsmeister added that the non-open source license would help prevent “the very low effort forks that are honestly kind of not bringing value to anyone.”
However, the choice left a bad taste in the crypto community’s mouth. Lefteris Karapetsas, the founder of portfolio manager Rotki, stated that Uniswap calling the code open source was a lie. Karapetsas noted that BSL cannot be termed truly open source.
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It’s not just technically. It’s just not opensource. It’s source available. BSL is widely accepted to not be an opensource license. We have had this discussion with the uniswap team back when they released v3.
Karapetas said on Twitter
Uniswap did not respond to queries at the time of writing.
UNI Price Paints A Bullish Pattern
Meanwhile, UNI price painted a bullish technical pattern called the ‘Falling Wedge.‘
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could see the Uniswap token rising nearly 205% to reach nearly $13.1, in theory.
UNI price pared in losses on Jan 15 as bulls helped the token escape the FUD from the SEC’s lawsuit against Binance and Coinbase. The Uniswap token price spiked over 9% on June 15 to form a daily high near $4.6 before correcting.
The token’s 20-day EMA (red wave) resistance near $4.62 rebuffed its rally. Breaking and consolidating above the immediate resistance might infuse some confidence in the rally. As a result, UNI price might target the 50-day EMA (purple wave) resistance near $4.95 before downside corrections pare gains.
Long upper wicks on the recent daily candles underscore the presence of bears near the EMA levels. If the selling pressure mounts, UNI price could drop to the support level near $4.13.
Moreover, breaching the immediate support level might result in the Uniswap token price falling to test support near $3.82 before recovering.
The RSI for UNI remained neutral at 41.06 on the daily charts.
