Ahead of Wednesday’s Federal Funds Rate announcement, the altcoin market, led by Uniswap (UNI), has been hinting at a possible bottom for the recent wider correction. The palpable rally of gold, in the past few weeks towards a new all-time high, has rejuvenated a potential rebound for Bitcoin (BTC) and the wider altcoin space.
Worth noting that the FUD of possible crypto selloff has significantly declined amid the anticipated end of the Fed’s Quantitative Tightening (QT).
What to Expect of UNI Price Ahead
From a technical analysis standpoint, UNI price recently rebounded from a crucial support level of around $5.5, which has been established in the past two years. The heavy capitulation in the past few weeks has returned the UNI price to a vital entry by long-term investors, thus signaling a potential bottom.
In the past few days, the UNI price has been forming a possible bearish ascending wedge, which could lead to a retest of the $5.5 price again before a major rebound toward an all-time high. However, a consistent close above the falling logarithmic trendline will invalidate bearish sentiment for UNI and set a pace for a new rally ahead.
Fundamental Outlook
As a U.S.-made DeFi protocol, Uniswap DEX has grown to a major ecosystem, with more than $3.9 billion in total value locked (TVL). The recent launch of the V4 hooks has heavily democratized the mainstream development of liquidity pools on Uniswap, led by Coinbase Global Inc. (NASDAQ: COIN).
Earlier on Tuesday, Coinbase announced the launch of verified pools on Uniswap via the Base network and available only with the Coinbase verifications credential. In collaboration with Gauntlet, Coinbase intends to optimize liquidity provision to enhance mainstream adoption of digital assets.
