Uniswap Price Prediction: Founder Faces Strong Opposition as Introduces New Exchange Fee, Will UNI Collapse?

FXStreet
Updated
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Source: DepositPhotos

Uniswap (UNI) founder Hayden Adams announced on X (formerly known as Twitter) that starting from October 17th, the protocol will now begin charging users a new swap fee. Specifically, a fee of 0.15% will be charged for token swaps, and the currently supported tokens include ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD.


Hayden Adams stated, "This fee is separate from the Uniswap protocol fee switch, which is determined by governance vote using UNI tokens. This interface fee is one of the lowest in the industry and will allow us to continue researching, developing, building, shipping, improving, and expanding cryptocurrencies and DeFi."


Different opinions have emerged regarding Uniswap's actions. Among them, Ari Paul, the founder of Blocktower Capital, praised Uniswap's move, saying, "It's unreasonable to charge fees for frontend or non-protocol-related features. What's interesting to me is that you even have to explain this intelligently."


However, others seem to disagree with this viewpoint. Users argue that the list is useless because it primarily consists of stablecoins, which account for 85% of the trading volume.


Uniswap 交易量(以貨幣對)

Trading volumes for various pairs on Uniswap, source: Uniswap.


A few days ago, the Uniswap price rebounded from its support level at $3.99 and traded at $4.12 during the session, experiencing a 4.36% fluctuation. However, the next key hurdle required for a recovery is $4.47, which aligns with the 50-day Exponential Moving Average (EMA). Reclaiming this price level is crucial for UNI's recovery.


Yet, considering the Relative Strength Index (RSI) currently in bearish territory and the unfavorable sentiment caused by the fee event, it is likely to stimulate selling pressure among community users. Therefore, overall, the current situation is unfavorable for UNI.


UNI/美元 1 日圖

UNI/USD 1-day price chart, source: TradingView.


If UNI breaks below the support line at $3.99, it may further push the Uniswap price towards $3.50. However, if broader market clues turn bullish and the resistance level of $4.47 is breached and turns into support, bearish arguments may become invalid, and the Uniswap price could potentially surpass the 100-day moving average at $4.73.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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