Uniswap price is sporting a bullish reversal pattern despite being subject to regulatory scrutiny from the United States Securities and Exchange Commission (SEC).
Meanwhile, the first-ever congressional hearing focused on DeFi will occur today at 10 a.m. ET. It is the first of many aimed at hashing out the United States’ DeFi policy.
What Does the DeFi Hearing Mean for Uniswap Price?
The United States Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion will today hold a hearing on “Decoding DeFi: Breaking Down the Future for Decentralized Finance” to explore the right policy approach. Polygon Labs’ Chief Legal and Policy Officer, Rebecca Rettig, is expected to appear among other witnesses.
This novel hearing brings a new paradigm to the DeFi industry as a legitimately better financial system. Speaking in the Unchained Podcast, Republican Congressman French Hill said agencies in the Biden-Harris Administration continue to use ‘rule-making and enforcement actions’ to kill off DeFi.
The state of decentralized finance (DeFi) in the U.S. is currently in tatters, with the SEC scrutinizing multiple DeFi projects. According to Statista data, Uniswap attracted more users from its native United States than other countries in August 2024, which means Uniswap would be one of the biggest beneficiaries of this policy discussion.
UNI price is down 2.2% in the last 24 hours and is trading at $6.55. As the hearing seems to be a positive sign for DeFi from the administration, Uniswap price is preparing to go on a 150% breakout rally if market conditions remain favorable.
UNI Price Analysis: Get Ready For $16
The Uniswap price is in a falling wedge, typically a bullish reversal pattern. It is approaching the apex of this wedge, suggesting an imminent breakout.
The UNI price has key support at the lower boundary of the wedge, around $6.5, and resistance at the upper boundary, near $7.Beyond this, the major resistance level is $16, which aligns with a previous high (point B).
The asset’s price action shows consolidation near the wedge’s resistance. A large green candle forming with increased volume could indicate a bullish breakout.
The falling wedge itself is the dominant technical structure, and the upcoming price action at the wedge’s apex is critical. If the breakout is confirmed and the price surpasses $9.00, targeting $16.00 becomes realistic, representing 139% upside potential from current levels.
Uniswap Price Chart
Conversely, if the anticipated breakout fails, Uniswap price may drop to $4, which coincides with the bottom of the wedge. Further selling pressure would force the price down to $2, invalidating the current bullish thesis.
Frequently Asked Questions (FAQs)
The U.S. Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion is holding its first-ever hearing on decentralized finance (DeFi) to discuss the regulatory framework for this emerging sector.
As one of the most prominent decentralized exchanges (DEXs), Uniswap could benefit from clearer regulations and support from the U.S. government.
The potential 139% upside is appealing, but it is important to remember that price movements are uncertain and depend on both the outcome of the congressional hearings and overall market conditions.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
