A Uniswap grant proposal project has sold off half of the grant amount in Uniswap tokens, dragging the token’s price with it and sparking bearish Uniswap price predictions.
The DeFi Education Fund, which said it was a non-profit organization providing grants for educational and political engagement, got a grant proposal of $10million approved on the governance platform of Uniswap. However, it sold half of this allocation within 24 hours, which appeared to contradict statements made by the fund’s proposers that the grant would be allocated over five years to prevent a dilution effect.
Whatever the case, there are fears that the much-feared dilution caused by the sale appear to be founded as the Uniswap token has fallen steeply in the last three days. Uniswap is down 1.25% as of writing.
Uniswap Price Prediction Outlook
The pairing between Uniswap and Tether touched support at 16.9508. However, an intraday bounce allowed the UNI/USDT pair to regain much of the lost ground. However, a breakdown of this price support could enable the bears to target the 13.8645 price mark (28 January and 22 June lows).
On the other hand, an extension of the intraday bounce could send the price towards 20.037, with 22.0712 and 23.6845 serving as additional targets to the north.