UNI Price bounced nearly 5% to $6.5 during the U.S. trading hours on Friday. The renewed demand pressure could be attributed to Bitcoin’s attempt to regain $60000 and the Launch of major security competition by Uniswap lab for the upcoming v4 protocol. Will this recovery be sustained?
UNI Price Rebounds As Uniswap Labs Launches Security Competition for v4
Uniswap Labs, the team behind the popular decentralized exchange built on Ethereum, has recently launched a $2.35 million security competition for its upcoming “v4” protocol. This competition, said to be the largest in Defi (decentralized finance), will be hosted by Uniswap Foundation and Cantina to enhance the security of v4 before its official release.
At Uniswap Labs, we’re focused on ensuring v4 is the most audited set of contracts ever deployed on a chain, the team added in their Blog post on Thursday, when UNI price traded around $6.3.
The v4 protocol introduces several significant innovations, notably the “hooks” system. This new feature allows developers to create customizable smart contracts within liquidity pools, enabling dynamic fees, on-chain limit orders, and other novel functionalities. The development will also consolidate all liquidity pools into a single contract, which is expected to reduce traditional costs and boost the network’s efficiency.
The security competition is scheduled from September 4th to September 30th, encouraging participants to review the v4 codebase and submit any vulnerabilities they discover. The reward structure is based on the severity of the bug and the quality of the documentation provided by the participants. The competition covers various components of the v4 protocol, including core contracts, periphery contracts, and the Universal Router.
Uniswap Price Hints Bull Cycle Within Reversal Pattern
The UNI price bounced from $4.7 to $6.49 in the past two weeks, registering 38% growth within a fortnight. This bullish reversal in the daily chart shows the formation of a bullish reversal pattern called— a falling wedge.
Amid the recent development, the Uniswap price will challenge the $6.7. A potential breakout will accelerate the bullish momentum and drive a 15% rally to hit the downsloping trendline at $8.
The Average Directional Index (ADX) indicator at a high of 47% accentuates the seller overextending the prevailing correction trend, which often attracts discount buyers. Thus, a potential breakout from the wedge pattern will signal a major trend reversal signal.
On a contrary note, if the UNI price reverts from $6.7 resistance, backed by a 20-day EMA slope, the bullish thesis will delay and bolster a reversal to $4.8.
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