UNI has been on a downward trend for almost a month. During this time, Uniswap managed to break several records and expand the network, but was unable to restore price movement. However, the latest announcement may do what other developers cannot.
UNI 4-hour price table | Source: Tradingview
A few days ago, Uniswap voted on the proposal which decided to deploy V3 on Polygon. The proposal was successfully passed and received more than 72 million votes for implementation.
Conclusion of the vote on Uniswap | The source: Uniswap
For Uniswap users, this is a welcome relief from Ethereum’s high gas fees. High gas fees are the dilemma of the leading smart contract blockchain, forcing investors to leave the network.
While Polygon’s gas fees have occasionally skyrocketed in certain circumstances, the average is still well below the Ethereum average of $ 4.45.
Ethereum gas fees | The source: Etherscan
As usual, investors are starting to speculate that this development will be the trigger that sends UNI price to the moon, but this is unlikely.
UNI is currently experiencing a period of consolidation followed by a slow recovery. The average directional index (ADX) is at its strongest level since February and the downtrend continues to dominate price action.
UNI price promotion | The source: TradingView
However, should the market recover, UNI could soon retest previous key support at $ 15.6. Indeed, this will be the first sign of recovery.
Currently, more than 69% of investors have lost money to a 44% decline since early November.
This also caused the market value of UNI to drop to an all-time low.
Market value of UNI | The source: mood
Fortunately, investors are still optimistic about the possibility of a rebound, so they chose HODL instead of selling. This, in turn, caused network speeds to drop to their lowest level since September 2020.
Speed with Uniswap | Source: Santiment
However, thanks to the high correlation with Bitcoin (0.96) and the slow but clear recovery of the crypto king, UNI was able to follow suit at a consistent rhythm to recoup the losses.
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