Uniswap Price Holds Strong at $6.6 After CFTC Settlement

The crypto market witnessed a slight downtick during the U.S. market trading session as Bitcoin plunged $56500. The renewed selling triggered a slight pullback in most of the major altcoins, including Uniswap.

The crypto market witnessed a slight downtick during the U.S. market trading session as Bitcoin plunged to $56,500. The renewed selling triggered a slight pullback in most of the major altcoins, including Uniswap. The UNI price is down 2.53% today but maintains a short-term sideways trend despite the recent legal saga with the US Commodity Futures Trading Commission (CFTC).

Uniswap Price Holds Strong at $6.6 After CFTC Settlement

According to a recent press release, the CFTC has settled charges with Uniswap Labs, a Delaware-based firm, for allegedly offering illegal margin and leveraged retail commodity transactions through its decentralized exchange. The firm agreed to pay a fine of $175,000 civil monetary policy and cease any violation of the Commodity Exchange Act.

The Uniswap price showcased initial volatility amid the report but retained a bullish narrative to hit $6.6 on Wednesday. While such legal challenges cause uncertainty for a particular asset, the UNI price recovery could be attributed to its cooperation with CFTC, which reduced its penalty. The company’s willingness to comply with regulatory frameworks has likely garnered investors’ interest as a more secure and sustainable platform.

Thus, if legal challenges were to intensify, Uniswap Labs could leverage these situations to build greater trust with investors by demonstrating their ability to navigate regulatory landscapes effectively.

Moreover, the large holders’ addresses with 1 to 10 million UNI have significantly accumulated since last year, which is currently recorded at 356.2 coins, according to Santiment data. Such whale activity often boosts market sentiment and indicates early signs of bottom formation.

UNI Price Hints Major Breakout Amid Wedge Pattern

On the technical front, the UNI price on the daily chart showcases a steady downtrend under the formation of a falling wedge pattern. Until the two converging trendlines as major resistance and support are intact, the sellers could remain the dominant force in this asset.

By press time, the UNI price trades at $6.2, while the market cap holds at $3.74 Billion. If the pattern holds true, the buyers should defend the $5.2 support and drive the asset 12% up to challenge the overhead trendline.

A potential breakout from this barrier will signal the major reversal and bolster the altcoin to chase a target of $8.67, followed by $12.

On the contrary, if the selling pressure at overhead trendline precise, the UNI price breakout will be delayed, and the next correction dip could retest $4.6 support.

Frequently Asked Questions (FAQs)

1. What was the recent Uniswap CFTC settlement about?

The Commodity Futures Trading Commission (CFTC) charged and settled with Uniswap Labs, a Delaware-based firm, for allegedly offering illegal margin and leveraged retail commodity transactions through its decentralized exchange, without registering with the CFTC. The firm agreed to pay a fine of $175,000 and cease any violation of the Commodity Exchange Act.

2. How has the UNI price been affected by the CFTC settlement?

Despite the legal challenges, the UNI price showcased a bullish narrative and surged to $6.6 on Wednesday. The cooperation with CFTC and reduction in its penalty might have attributed to the price recovery.

3. What is the current Uniswap price trend?

The UNI price is currently trading under a falling wedge pattern on the daily chart, with major resistance and support at $8.67 and $4.6, respectively. The sellers are still dominant as the two trendlines remain intact.

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