UNI, the native token of Uniswap, is experiencing a strong rally, leading gains among the top 100 cryptocurrencies. At press time, UNI was trading at $13.20, up an impressive 21.42% over the past 24 hours.
Weakened dollar a key driver
This remarkable performance is largely attributed to the weakness of the US dollar, which has been boosted by recent US economic data. Although the PCE indicator remained in line with expectations, it closed above the previous month at 2.3%, suggesting persistent underlying inflation. In addition, jobless claims remained stable at low levels, signaling a strong labor market. These data, combined with expectations of expansionary economic policies under the new administration, create uncertainty in the market and weakened the dollar. Historically, dollar weakness is beneficial for cryptocurrencies, as many investors see them as a refuge from inflation and monetary instability.
Price broke above the $12 resistance and is above the 25-, 50-, and 200-day exponential moving averages, indicating a clear bullish trend / TradingView
Technical Analysis: Bullish Signals
Technically, UNI is showing significant strength. The price broke through the resistance of USD 12 and is above the 25-, 50-, and 200-day exponential moving averages, indicating a clear bullish trend. Moreover, the bullish crossover of the EMA100 over the EMA200 suggests that this bullish momentum isa could hold in the medium to long term.
Since bottoming at $6, UNI is experiencing a trend reversal to the upside, supported by a sharp increase in trading volume over the past two months. This increase in volume suggests a solid demand for UNI and reinforces the bullish trend.
A promising future
Up 110% over the past 12 months, UNI is proving to be an attractive investment for many investors. The combination of fundamental factors, such as the weak dollar and expectations of expansionary monetary policies, along with bullish technical signals, suggest that UNI could continue its upward trend in the future.
Uniswap v4, the Latest Evolution of the Protocol, Offers Security and Efficiency to Users
Uniswap, the leading decentralized exchange (DEX) protocol, announced the launch of a $15.5 million bug bounty program. This is considered the largest to date, for its latest version, Uniswap v4. The Uniswap platform made the official announcement on its blog.
Uniswap v4 represents a significant evolution of the protocol, transforming it into a development platform that unlocks new market structures and enables it to serve more users. This is achieved through the introduction of hooks, contracts that developers can create to customize the interaction of pools, swaps, fees, and LP positions. Hooks enable new features on top of the Uniswap protocol.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves risks and may not be suitable for all investors.
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