UNI Price Slides Due To SEC Investigation, In Risk Of Deep Plunge?
September 03 2021 - 1:00PM
NEWSBTC
The decentralized nature of Uniswap (UNI) will be put to the test.
Earlier, it was revealed that the Securities and Exchange
Commission (SEC) opened an investigation on Uniswap Labs, the
company behind the protocol. Immediately after the news broke out,
the price of UNI, Uniswap’s governance token, took a hit and
dropped as much as 4%. Meanwhile, the main cryptocurrencies in the
top 10 showed strong gains. Bitcoin managed to climb above the
$50,000 mark with a 2.7% profit in the daily chart, and Ethereum
went north of $4,000 for the first time since May’s crash. ETH
trades at $3,986, at the time of writing, with a 6.1% profit. UNI’s
price stands at $29,09, and it’s the worst-performing asset in the
crypto top 10 by market cap with a 2.1% loss in the daily chart. In
the crypto community, many remember XRP’s price reaction to the SEC
action filed against Ripple Labs, and two of its executives. At
that moment, XRP was the third cryptocurrency by market cap and was
following the bullish sentiment in the market. As 2020 was coming
to an end, so it did XRP’s upside momentum. The SEC killed the push
and XRP plunged, presenting heavy losses for a couple of months.
It’s unclear if UNI will follow, up until now the token showed
conviction to break above major resistance at $30. The governance
token was trading in the $25 – $30 range. Thus, experts claimed
that this was the last obstacle before it can drive a fresh rally.
UNI’s indicators point to further appreciation but could flip
negative/neutral in the coming days. The Relative Strength Index
(RSI), an indicator to measure momentum, for the governance token
stands at 56.7 or neutral, at the time of writing. In the short
term, it seems critical that UNI breaks the $30 resistance. If the
rest of the market makes a strong push to previous highs, UNI’s
price could benefit. In that sense, Bitcoin and Ethereum
performance are critical. Uniswap (UNI) A Battle For The Whole
Crypto Industry? The rumors about a possible SEC investigation on
Uniswap Labs have been circulating for some time. As NewsBTC
reported, the software development studio limited access to certain
tokens via the app.uniswap.org domain. Some speculated that this
decision was made due to pressures from the Commission. In
addition, SEC Chair Gary Gensler seems determined to “put DeFi
under a microscope”. Compounds Labs General Counselor Jake
Chervinsky comment the following on recent events: (…) it shouldn’t
surprise anyone who’s seen Chairman Gensler’s recent comments on
DeFi. It also shouldn’t worry anyone too much (yet). An
investigation is *not* an allegation of wrongdoing, it’s just how
SEC gathers information. Related Reading | New To Bitcoin? Learn To
Trade Crypto With The NewsBTC Trading Course
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