‘Uniswap (UNI) Price Rally Cools Off as SEC Fears Fade’

The price of Uniswap (UNI), which experienced double-digit rises in the second half of June, has fallen to $5.3 this week after futile attempts to retake the $6 region. According to on-chain data, the UNI price surge is slowing down as the SEC’s disinformation campaign against centralized exchanges fades.

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Due to investor interest in Uniswap and other well-known DEXs following the Securities and Exchange Commission’s (SEC) lawsuit against Binance and Coinbase, the price of UNI increased 30% in June.

However, a month later, shares of Coinbase are up 50%. Binance’s BNB currency has recovered 10% to recapture $250, and trading volume on regulated CEXs like Bitstamp and Kraken has increased significantly as well.

Downtrend in Uniswap Trading Volume Is Unsettling

On-chain data reveals that some of Uniswap’s traction has been being eaten away by the resurrection of the centralized exchanges. The Tie, a blockchain analytics platform, reports that in July, Uniswap user engagement and transaction volume dramatically decreased.

On July 11, the number of Uniswap transactions fell 14% below the 30-day average.

By monitoring the number of wallet addresses that do transactions each day, Active Addresses measures user activity. When it declines, like in the example above, it signals a decline in the number of people consuming the network’s essential services.

It’s not surprising that UNI-related transactions have now fallen below the 30-day average. Holders of UNIs should prepare for further declines if this unfavorable trend of declining market participation continues.

The Bears are Eyeing the $4.50 Territory in the UNI Price Prediction

The aforementioned elements suggest that the Uniswap bears may be considering a turn around toward the $4.50 region.

However, they would need to overcome the $5.20 barrier first. At that point, the slide may be stopped by 11,000 investors who purchased 27 million UNI tokens at an average cost of $5.24.

But UNI’s price can fall to $4.50 if the bears take grip as expected.

However, if UNI prices break over $6, the bulls could invalidate the bearish projection. The $5.80 resistance, however, might provide a problem once more.

As can be seen from the chart above, 12,000 investors spent an average of $5.77 to purchase 18 million UNI tokens. Once it gets close to that price range, Uniswap could retrace if investors decide to book profits.

However, UNI can hit the $6 objective if the resistance level fails to hold.