Among the tokens operating in the DeFi sector, it always stands out Uniswap (UNI)which also occupies the 17th position in the coin market capitalization, with about 5.5 billion in capitalization.
Uniswap is in fifth place for TVL
Uniswap at the level of TVL (Total Value Locked), according to data from the Defillama website, is in fifth place, with 4.16 billion equivalent value locked in its services. TVL’s highest levels were reached on May 21 at 10.24 billion, coinciding with historic highs for its price. These data confirm that The direct correlation between TVL and the trend in the value of a DeFi related token.
The value of Uniswap, in the last 15 days, has registered a growth of 16%, thus it is back over $7. However, if we look at its all-time high of $45 on May 21, in the midst of the DeFi boom, it is losing 83% at the current price, while -59% since the beginning of the year.
One year in the bear market
Of the following Weekly chart, We can see the historical performance of Uniswap which has a short history, as it went public in the summer of 2020. Since its launch at its highs of $45, in just 8 months it has recorded huge quadruple-digit growth of more than 11000%. Then the DeFi hype started to subside and the value of Uniswap too, as well as TVL.
Uniswap entered the bear market on November 21 when it dropped below $23, in days when most of the cryptocurrency market hit all-time highs. The descent was characterized by classicism A series of decreasing elevationsshaded by orange arrows.
Uniswap within a square range
the first Downtrend reversal signal, we could get it with the first break of the bearish top that passes to the $10 region. Looking at the chart, we can see that this level corresponds to the resistance of the fund range that Uniswap is trading in these summer months.
An area is highlighted in blue on the chart, ranging from $9 to $4 where the price has been fluctuating for about 6 months. The range is pretty wide, because it’s 56% from top to bottom, and Uniswap is currently still in it.
It is near the resistance at $7.50
Cut the time and get off on daily chartWe can take a look at how Uniswap has performed in recent months and what needs to be done. After bottoming at $3.33, the price rebounded nearly 200% in 40 days, and stopped at $9.82. Here we see the 38.2 Fibonacci of the vector passing from the December 21 highs of $20 to the lows of $3.33. After reaching the target, the price started to correct.
At this stage of the decline, the secondary vector to consider is exactly the downward trend from $9.82 to $5.10. In this vector we see that The resistance level moves to 7.50$ and corresponds to 50% Fibonacci of the studied move.