- UNI now trades at a price level last observed in January 2022.
- While buying pressure persisted, its Chaikin Money Flow (CMF) hints at the possibility of a decline.
The value of Uniswap’s governance token UNI price rose to its highest level since January 2022 during the intraday trading session on 6th March.
This came amidst the general correction in the prices of many leading crypto assets and following a snapshot poll on the proposal to reward UNI holders from the decentralized exchange’s (DEX) revenues.
In a proposal dated 23rd February, Uniswap laid out its plans to modify the protocol’s fee mechanism to benefit UNI token holders who have delegated and staked their tokens.
According to the DEX, this upgrade is targeted at encouraging UNI token holders to participate more actively, engage in discussions, and make informed decisions about the protocol’s future.
The snapshot poll, which went live on the 1st of March to gauge community members’ sentiment on the proposed overhaul to DEX’s governance structure, received 100% of all votes cast.
According to Uniswap, the on-chain voting process on the proposal will commence on the 8th of March.
UNI sees gains, but…
At press time, UNI exchanged hands at $15.04. According to CoinMarketCap, the altcoin traded above $17 for the first time since January 2022 before witnessing a drawback to the $15 price region.
Despite the price retreat, demand for UNI remained high. An assessment of the token’s momentum indicators on a 24-hour chart showed that buying activity outpaced selling pressure.
At press time, its Relative Strength Index (RSI) and Money Flow Index (MFI) returned values of 76.16 and 66, respectively. These values showed that buying persisted amongst spot market participants despite the slight price correction witnessed in the past 24 hours.
Further, UNI’s Average Directional Index (yellow) confirmed the strength of the market’s bullish trend. At 41.59, this indicator showed that the bears might find it challenging to regain market control in the short term.
Likewise, UNI’s positive directional index (green) rested above its negative (red) index. When an asset’s Directional Movement Index is positioned this way, it suggests that the positive movement in prices is stronger than the negative movement.
Realistic or not, here’s UNI’s market cap in BTC’s terms
However, despite UNI’s price growth in the past few weeks. Its Chaikin Money Flow (CMF) has trended downward, thereby creating a bearish divergence.
Source: TradingView
This indicator measures the flow of money in and out of an asset. When a bearish divergence is formed, it suggests the possibility of reversal or consolidation in the asset’s price.
