UNI to $10 Again? Volumes Rise on Rumors of Amber Group Investment

Uniswap (UNI) has gone up by nearly 5% in the past 24 hours to start the week, as rumors have been circulating about an $11 million investment from Amber Group.

The latter is an asset management firm listed on the Nasdaq under the ticker symbol AMBR. Data from Lookonchain shows that a wallet linked to the company deposited nearly 1.4 million UNI tokens on Coinbase Prime.

Lookonchain Official X Account – Source: X.com

The community seems to believe that this could be a first step to set up a Uniswap treasury company. However, the firm has not confirmed any of these rumors.

Trading volumes in the past 24 hours have jumped to 60%, and currently account for 18% of the token’s circulating supply.

UNIfication Proposal Managed to Push Uniswap to $10

In addition to this market chatter, Uniswap has accumulated a 14% gain in the past 7 days and has defied the market’s latest sell-off after the protocol announced that it will switch to a UNI-centered fee collection system.

This means that users will be able to settle transactions within this Ethereum decentralized exchange (DEX) by using its native asset. A portion of the fees that the solution collects in UNI will be directed to its treasury and burned to reduce the asset’s circulating supply.

In addition, the proposal contemplates the burn of 100 million tokens currently held by the treasury. This would mean a 16% reduction in the free float, and could result in a supply shock in the near term.

The “UNIfication” proposal, as it was named, was brought to the table by the project’s leader and co-founder, Hayden Adams.

Today’s uptick is also defying the market’s overall mood, as most tokens are dropping. In the past couple of weeks, the market has tanked as analysts were forced to revisit their projections following the latest hawkish comments from the head of the Federal Reserve, Jerome Powell.

Data from FedWatch now sees less than a 50% chance that the Fed will cut rates in December. Before October’s FOMC meeting, analysts’ odds of a rate cut stood at 91%. This reflects a significant shift in sentiment and explains the latest wave of selling.

Crypto long liquidations in the past 24 hours spiked to nearly $400 million again. Meanwhile, nearly $4 billion worth of long positions have been wiped out since November 10, even though the U.S. government ended its longest shutdown in history.

UNI Has Bounced Off a Former Trend Line Resistance

The fact that UNI has managed to stay afloat regardless of these deteriorating market conditions indicates that participants believe that passing the UNIfication proposal could push the token higher.

UNI/USD Daily Chart (Coinbase) – Source: TradingView

Back when the proposal was floated, the price of UNI rose rapidly to $10. However, it shed most of these gains as market sentiment soured during the weekend.

Looking at the daily chart, the price just hit a former trend line support from above. A successful rebound off this level would confirm a retest and could set UNI on an upward trajectory once again.

The price must overcome the 200-day exponential moving average (EMA) for that to happen. This breakout would confirm that UNI could soon surge to $11, meaning a 41% upside potential.

The Relative Strength Index (RSI) shows that positive momentum has accelerated recently as a result of the UNIfication proposal.

Market conditions are not the most friendly at the time, but buying pressure seems strong. If rumors of a digital asset treasury (DAT) launch by Amber Group are confirmed, the price could explode almost instantly and climb to $10 again in a heartbeat.