The crypto market witnessed a slight downtick during the U.S. market trading session as Bitcoin plunged $56500. The renewed selling triggered a slight pullback in most of the major altcoins, including Uniswap. The UNI price is down 2.53% today but maintains a short-term sideways despite the recent legal saga with the US Commodity Futures Trading Commission (CFTC).
Uniswap Price Holds Strong at $6.6 After CFTC Settlement
According to a recent press release, the CFTC has settled charges with Uniswap Labs, a Delaware-based firm, for allegedly offering illegal margin and leveraged retail commodity transactions through its decentralized exchange. The firm agreed to pay a fine of $175,000 civil monetary policy and cease any violation of the Commodity Exchange Act.
The Uniswap price showcased initial volatility amid the report but retained a bullish narrative to hit $6.6 on Wednesday. While such legal challenges cause uncertainty for a particular asset, the UNI price recovery could be attributed to its cooperation with CFTC, which reduced its penalty. The company’s willingness to comply with regulatory frameworks has likely garnered investors’ interest as a more secure and sustainable platform.
Thus, if legal challenges were to intensify, Uniswap Labs could leverage these situations to build greater trust with investors by demonstrating their ability to navigate regulatory landscapes effectively.
Moreover, the large holders’ addresses with 1 to 10 million UNI have significantly accumulated since last year, currently recorded at 356.2 coins according to Santiment data. Such whale activity often boosts market sentiment and indicates early signs of bottom formation.
UNI Price Hints Major Breakout Amid Wedge Pattern
The Uniswap price daily chart shows a steady downtrend under the formation of a falling wedge pattern. Until the two converging trendlines as major resistance and support are intact, the sellers could remain the dominant force in this asset.
By the press time, the UNI price trades at $6.2, while the market cap holds at $3.74 Billion. If the pattern holds true, the buyers should defend the $5.2 support and drive the asset 12% up to challenge the overhead trendline.
A potential breakout from this barrier will signal the major reversal and bolster the altcoin to chase a target of $8.67, followed by $12.
On the contrary, the selling pressure at overhead trendline precis, the Uniswap price breakout will be delayed, and the next correction dip could retest $4.6 support.
Frequently Asked Questions (FAQs)
Uniswap Labs settled with the CFTC over illegal margin trading products and agreed to pay a $175,000 fine.
Despite initial volatility, the UNI price rebounded to $6.6, signaling market resilience.
Uniswap is showing a falling wedge pattern, indicating potential for a breakout.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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