uniswap Token Faces Pressure, But Unichain Shows Promise
Uniswap’s token (UNI) has fallen to a critical support level of $5.26. This represents a 72% drop from its peak this year.Teh decline is due to the ongoing crypto market sell-off and increased competition from other decentralized exchanges.
Despite the challenges, Unichain, Uniswap’s layer-2 network, is gaining traction. It processed over $329 million in the last seven days. This puts it ahead of other layer-1 and layer-2 networks like Core and Stacks.
unichain offers cheaper transactions, cross-chain liquidity, and instant processing. These features make it a strong competitor in the decentralized exchange space.
Uniswap’s fees have also remained steady this year. The network has generated over $301 million in fees, surpassing Ethereum and AAVE.
Technical analysis suggests a potential bullish breakout for UNI. The token has formed a megaphone pattern, a bullish indicator. If the price breaks above the upper trendline,it could reach $19.32, a 275% increase from current levels.
However, a drop below the lower trendline could signal further declines. Investors should monitor these levels closely.
