Is Uniswap Going to Zero? UNI Price Falls 6% as New Swap Fees Go Live and New Crypto Project Raises $570,000

cryptonews.com:

Leading DEX Uniswap has fallen -6% to rock-bottom levels following the introduction of a new 0.15% fee on crypto swaps involving Ethereum, USDC and others.

The decision for a new fee levy on DEX traders comes as Uniswap Labs seeks new funding to manage their over-extended operations. This is because the current 'protocol fee' charged for crypto swaps is managed by UNI governance voters.

Despite attempts to justify the fee - highlighting that it's one of the lowest in the DEX industry, and will fuel start-up development for alternative user interfaces - markets have reacted with resounding disappointment.

As price action finds lower support, UNI is currently trading at a market price of $3.90 (representing a 24-hour change of 0.39%).

This comes as Uniswap price tumbles down to lower trendline support, in a tumultuous reaction to the swap fee news.

With none of the new fees generated being reflected to UNI token holders, a clear sell-incentive has been introduced.

UNI price action is now breaking away from the gently descendant 20DMA which current sits at $4.24.

Meanwhile, the 200DMA - a level untouched since August 16 - remains high above price action at $5.11.

In a small display of strength, Uniswap's RSI indicator is showing significant bullish divergence with an oversold signal at 33.28 - suggesting price could push up from here in a return to the 20DMA.

But the MACD contrasts this, painting a bleak view of momentum at -0.026 bearish divergence.

Overall, the worst of the tumble appears to have passed for now, with UNI likely to find supportive feet at this level in a return to the 20DMA.

This leaves UNI with an upside target at $4.24 (a potential +8.52%).

While downside risk from here could see UNI tumble to lower trendline