The Unifi Protocol price has defied gravity in the past few trading sessions as investors buy last week’s dip. UNIFI rose to a high of $3.94, which was the highest level since May 7th this year. The current price is about 135% above the lowest level in May. It is a relatively small blockchain project that has a total market cap of about $18 million.
What is Unifi Protocol, and why is it rising?
Unifi Protocol is a decentralized autonomous organization (DAO) that operates a group of non-custodial and interoperable smart contracts in the DeFi industry. As a result, the platform helps developers create a unified platform that links multiple blockchains into a single DeFi marketplace.
It also owns uTrade, which is a platform to swap tokens and provide liquidity. One can earn 23.34% APR on UNFI and other cryptocurrencies on this platform. Unifi has a total value locked of over $10.9 million. And as shown below, the number of transactions per day has been on an upward trend lately.
Recently, the developers launched uBridge, which is a cross-chain bridge. Unifi Protocol has been supported by leading organizations like Binance, Chain Capital, HBTC Labs, and Consensus Lab.
The Unifi Protocol price is rising as investors react to the upcoming major upgrade of the network. The upgrade will introduce a new incentive system to supercharge UP’s redeem the value, and take the platform to a new level. The developers said that the new upgrade was motivated by the fact that UP has stagnated in the past few months.
UP V2 will be rolled out in four important phases. The first one will be UP Token Migration. The second stage will be to let the UP tokens start generating returns through staking. In the third phase, arbitrage trades will increase the redeem value, while the fourth phase will introduce Bonded UP; the developers wrote:
The UP v2 “UPgrade” introduces 5 new ways for UP to increase in backed value and total value locked — public UP minting, staking rewards, LP rewards, arbitrage profits, Bond minting fee — with trading fees of course being the sixth method.”
Unifi Protocol price prediction
The Unifi Protocol price has made a strong recovery in the past few days. First, it rose to a high of $3.90, which was the highest level since April. Then, as it rose, it moved above the important resistance level at $3.72, which was the highest level on May 30th. Now, UNIFI has formed what looks like a cup and handle pattern. This pullback is part of the handle pattern. It is also above the 25-period and 50-period moving averages.
Therefore, if the cup and handle pattern works well, there is a likelihood that the coin will have a bullish breakout in the coming days. This breakout will be confirmed if it manages to move above the resistance level at $3.72. Conversely, a drop below the support level at $3 will invalidate the bullish view.
