Uniswap (UNI) price prediction: more upside despite risks

Uniswap (UNI) price staged a strong comeback this week as investors reacted to the rising volumes and the company’s response to the SEC’s Wells Notice. It jumped to a high of $9.833 on Tuesday, its highest swing since April 11th. It has soared by over 58% from its lowest level in April.

Uniswap’s volume and Well’s Notice

Uniswap, the biggest player in the Decentralised Exchange (DEX) industry is seeing higher volumes this week as most cryptocurrencies rebounded.

Data compiled by CoinMarketCap shows that the 24-hour volume of its v3 on Ethereum jumped to over $1.9 billion in the past 24 hours. Its Arbitrum version handled tokens worth over $731 million while its Base version processed tokens worth over $245 million.

Uniswap’s biggest challenge is that it is facing substantial competition from Solana DEX platforms like Jupiter, Raydium, and Orca. It is also seeing competition from other DEX platforms like Curve, DODO, and Balancer.

Further, Uniswap has over $6.28 billion in total value locked (TVL), an 18% increase from the same period on Wednesday last week. It is the sixth-biggest player in the DeFi industry after Lido, EigenLayer, AAVE, Maker, and JustLend.

The other challenge facing Uniswap and other DEX networks is that the SEC is planning to launch a lawsuit against the company. It sent Uniswap a Well’s Notice recently, accusing the company of offering unregistered securities in the United States.

In a statement on Tuesday, Uniswap blasted the SEC for having the wrong assumptions about what it does. Instead of being securities, the exchange argued that crypto tokens were simply a file format for value.

A finding that tokens are securities would dent the DEX industry in the United States, a key market, because it would force Uniswap to register with the SEC. Also, crypto token providers would be registered.

Still, that would not mean the end of Uniswap and the UNI token because most of its revenue comes outside of the United States.

Uniswap price forecast

UNI chart by TradingView

The daily chart shows that the UNI token price formed a triple-bottom pattern at $6.73 recently. It has now rebounded above the crucial resistance level at $8.37, the neckline of this pattern.

The token has bounced above the 61.8% Fibonacci Retracement level and the 50 and 25-day Exponential Moving Averages. It has also retested the first support of Andrew’s pitchfork tool.

Therefore, the outlook for the token is bullish, with the next point to watch being the 50% retracement point at $10.35. A break above that level will lead to more upside as buyers target the 38.2% point at $12.

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