Throughout the past few days and weeks, Uniswap’s token UNI has been experiencing huge inflows of capital. Various investors are flocking to try to gain governance rights over Uniswap. Recently, Uniswap has become the most well-known AMM in the market at a very fast pace.
Because of this, the price of UNI soared high. Yesterday, it hit highs of over $8.40 before the huge inflows of selling pressure that has been a hindrance to its ascent. Moreover, some of its recent gains were erased.
Regardless, from its lows of $1.00 that was set just after its launch, it is still trading up well over 600%.
Now, the dust seems to settle a little bit. Moreover, around UNI’s current price region, it appears to be forming some stability.
With this, various analysts are starting to flip long on the token. They are pointing out the negative funding along with the firm base of support just below where it is currently trading.
Uniswap’s UNI Sees Funding Flip Negative Once Again as Bulls Roar
As of the moment, UNI is trading up 3 percent with the current price of $6.69. This marks a little rebound from its recent lows of $6.00. These lows were set just after experiencing the inflows of selling pressure.
Its technical outlook received a strong blow because of the intensity of this decline. Moreover, it likely to see further upside.
The negative funding rates seen on the Uniswap token’s perpetual swaps are a factor that means there is room for a push higher. Moreover, it would be costly for the investors to be short on the crypto.
In a recent tweet, one certain analyst shared a chart that reflects the trend.
Here’s How High UNI May Surge in the Near-Term
An analyst talked about where he expected the crypto currency’s price to trend in the near-term. One certain analyst said that a move up towards $7.70 could be approaching in the coming days.
It yet to be discovered whether or not the Uniswap token’s price would start to drift lower as the hype fades. However, it is of importance to remember that its diluted market cap is already close to $7 billion.