Uniswap’s governance token (UNI) has broken into the top ten cryptocurrencies by market cap, less than six months after its initial release. It joins Chainlink (LINK) as the second core DeFi-related token in the prestigious ranking.
The latest milestone comes en-route to UNI hitting a new all-time high of $34.7. After a period of consolidation with the $20 price range, UNI saw a breakout northward and defied bearish odds to continue its meteoric rise.
At the time of writing, UNI is trading at $32.6; a clear indication that the surge is temporarily coming to an end as a result of a little seller congestion. However, one can rightly expect the increase to continue, with UNI trading above its pivot point at $30.
Reflecting on the UNI journey so far
Ethereum developer, Hayden Adams created Uniswap, the decentralized exchange protocol, in 2018 as a way for ERC-20 token holders to easily swap assets.
Uniswap’s UNI was introduced to the market last year as a governance token and via an airdrop to historical Uniswap users.
The 400 UNI tokens airdropped to users were worth $1200 at the time with UNI selling for around $3 per unit on its opening trading day. Interestingly, the same stack is worth well over $12,000 at the time of writing.
For the Days Ahead
With how fast UNI climbed up the market ranking, it is almost impossible not to think that UNI is one of the big contenders for a spot among the top 5. Before contending for the fifth spot, the coin will likely undergo another consolidation phase that will culminate in an up to 40% move in either direction.
The first stage of rising by 40% is to defend the $30 pivot point. After defending the pivot point, traders will look to use the $32 mark as leverage to test further resistance levels such as the $34 and the $36 resistance. Using the $36 as support, traders can finally test the first pivot resistance at $38.
