On December 22, the Uniswap community's grand proposal to "destroy 100 million UNI" was passed ahead of schedule! The on-chain voting support exceeded 69 million votes, with a passing threshold of only 40 million, and community support rate close to 100%, almost unanimously passed with cheers!
News directly hitting the mark
This proposal is not to be taken lightly. Once passed, after a 2-day lock-up period, we will directly destroy 100 million UNI tokens, and also enable the mainnet fee switch, with a portion of the fees in the future continuously used to destroy UNI. In simple terms, the deflationary strategy is officially launched, and the circulating supply of UNI in the market will decrease. Stimulated by this expectation, the price of UNI began to rise from the 20th, peaking at $6.5, an increase of about 25% in just a few days! The current price is fluctuating around $6.16.
Baiyue believes that the whales have already caught the scent! Data shows that a large account opened a 10x leveraged long position at an average price of $5.2 before the vote began on the 19th, and is now floating a profit of $870,000, with a return rate exceeding 150%! They haven't closed their position and have set a take-profit order to look for higher. What does this indicate? Smart money has already positioned itself early and is still bullish!
Technical analysis is keeping up
Having just news is not enough; let's take a look at the 4-hour candlestick chart.
Price: Currently at $6.216, right above the 'key level' of $6.206, which is a positive signal.
Trend: The yellow and white lines in the chart are above the zero axis, maintaining a golden cross trend, indicating bullish strength. There are also signs of volume breakout, suggesting funds are following in.
Key position:
Resistance above: First is $6.425, followed by the heavy resistance zone of $6.740-$6.800. If it breaks through, the sky is wider.
Support below: The recent support is at $6.000, with strong support at $5.370. As long as it doesn't break the key level of $6.206, the short-term trend remains stable.
Advice for retail investors:
For those who have already entered: Congratulations! If the cost is low, consider holding above the key level of $6.206 and set the stop-loss slightly below $6.000. If it fails to break through the resistance levels of $6.425 or $6.740.
For those wanting to get in: Avoid blindly chasing highs! The current price is not low; the best strategy is to wait for a pullback. You can pay attention to two positions: one is a small position testing opportunity when it retests the key level of $6.206 and holds.
For those observing: Pay special attention to the $6.206 pivot point. If it can hold steady, there may be further potential; if it breaks down with volume, it may require a longer period of consolidation.
Baiyue's personal opinion
My view is: the news and technical aspects have formed a resonance! The deflation expectations brought by the burn are indeed a positive factor, providing a reason for the market to go long, and the technical chart has also shown a bullish trend with the coordination of volume and price. In the short term, both sentiment and funds are leaning optimistic. There is no straight-up market in the crypto space. The price has risen in waves, approaching the previous rebound resistance level, and a short-term pullback or fluctuation may occur at any time. Although the whales are bullish, they have also set take-profit ranges, indicating they are cautious of high volatility.
The market always has opportunities; the key is to operate calmly. Baiyue will continue to help everyone monitor on-chain dynamics and move steadily forward together! Follow Baiyue and participate in every attack by the villagers of Baiyue! Baiyue will announce specific entry times and real-time news in the village every day!
