Uniswap Price Holds $5 Support Post-Q2 Financial Report; Rebound Ahead?
Highlights
- The Uniswap price witnessed a steady correction in the past five months under the influence of a falling wedge pattern.
- The Uniswap Foundation reported holding $36.81 million in USD, stablecoins, and 0.68 million UNI tokens.
- An oversold signal from the RSI momentum indicator suggests a potential rebound from the $5 support level.
Uniswap Price plunged over 2% during the U.S. trading hours on Wednesday. The renewed supply pressure has stalled Bitcoin’s recovery at $57000, indicating that the prevailing bearish momentum persists. These coming weeks will be crucial for crypto investors to identify whether the market correction has bottomed.
Uniswap Foundation Q2 Financial Snapshot
The non-profit organization Uniswap Foundation recently released its Q2 2024 financial report, revealing substantial financial health and strategic allocations. As per the Blog post, the Foundation held $36.81 million in USD and stablecoins and 0.68 million UNI tokens on June 30, 2024.
The funds are designated for various purposes, including $26.12 million for grants. Of this, $22.46 million is earmarked for initiatives planned for 2024-2025, while $3.66 million covers commitments from previous periods. Additionally, operational expenses are projected to total $10.69 million through 2025.
In Q2 2024, the Foundation committed $3.22 million to new grants and disbursed $2.48 million to ongoing projects. Operating expenses for the quarter amounted to $1.6 million, reflecting the Foundation’s commitment to maintaining a lean yet effective operation. The Foundation also generated $0.19 million in revenue from dividends and interest.
Uniswap Price Signals Bullish Reversal
Since mid-June, the Uniswap price has recorded a steady correction trend in the daily chart. The bearish turnaround plunged the asset from $12 to $4.7, accounting for a 60% loss. The falling price has recently witnessed renewed demand pressure at $5, a level back by the lower trendline of the falling wedge pattern.
This pattern is formed by converging downward trendlines, typically suggesting a slowdown in selling momentum.
The Relative Strength Index (RSI) indicator’s plunge to the oversold region of 28% should attract dip buyers to the market. If the recovery sustains, the UNI price could rise to 43% to challenge the wedge pattern resistance at $8.3.
On the contrary, the Bollinger band indicator channeled on the downside indicates that the sellers are dominating this asset’s movement. A potential breakdown from the lower trendline will intensify the supply pressure and could plunge the Uniswap price 32% to seek support at $3.8.
Frequently Asked Questions (FAQs)
1. What does an oversold signal from the RSI momentum indicator mean?
2. What is the purpose of the grants given by the Uniswap Foundation?
3. Which are key support and resistance for UNI price?
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