How sustainable is Uniswap UNI/USD 8% jump amid the rate hike?
Uniswap gained 8% on Thursday immediately after the Fed rate hike.
Uniswap Foundation announced its first grant totaling $1.8 million for ecosystem growth.
UNI trades at a support zone.
Uniswap UNI/USD rose more than 8% before cooling down on Thursday. The gains coincided with a surge in trading volumes of more than 70% despite a Fed rate hike. There was no specific driver for the gains, although there were noticeable developments.
On September 21, the Uniswap Foundation announced the first batch of its grants. According to the Foundation, a total of $1.8 million grants will go to 14 recipients. The grant is part of Uniswap’s move to grow the ecosystem. The move comes barely a month after the Uniswap community passed a proposal to establish the program. The grants will be awarded to teams and projects focusing on three areas. These are community growth, governance, and protocol growth.
It should be noted that Uniswap has been losing value since the Ethereum merge occurred a week ago. The DEX, the biggest in the world, has most of its funds locked on the Ethereum platform. The total value locked on Uniswap is $4.97 billion, with $4.77 billion on Ethereum.
Uniswap token recovers at a level at or slightly below the support
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Source – TradingView
If we turn to the technical side, UNI trades at a support zone of $5.6. The trend remains bearish. The token is still under pressure as it has yet to recover above the support, which has now turned into resistance. A recent cross of the 20-day MA below the 50-day MA heightened the bearish weakness.
Concluding thoughts
UNI has to recover successfully above $5.6 to consider the intra-day gains sustainable. We need to watch the close of the daily candlestick to confirm a potential bullish reversal.
