Top DeFi Tokens Skyrocket as Uniswap Proposes Significant Change

Cryptocurrencies with DeFi fundamentals including Uniswap (UNI), Curve DAO Token (CRV), and Aave (AAVE) registered mind-blogging price jumps on February 23. This pump occurred because the Uniswap Foundation announced a major proposal to its fee structure.

According to Uniswap, its governance lead, Eric Koen, proposed upgrading the UNI reward system. The proposal noted that stakers and delegators should have access to UNI rewards.

🔈 New Governance Proposal Posted 🔈

UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol’s governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.

— Uniswap Foundation (@UniswapFND) February 23, 2024

In a different post on X, Koen explained that the large-scale upgrade, if approved, could improve the protocol’s decentralization. He also mentioned that it was important to take the step so Uniswap could maintain its lead in terms of liquidity over other chains.

Interestingly, this proposal aligned with the views of the broader crypto community based on the comments from the post. “To survive & thrive in a credibly neutral way, Uniswap Governance needs to use its reputational, financial & technical capital for good,” Koen wrote.

A UNI “god Candle” Appears

Within minutes of the announcement, UNI’s price made an incredible rise, increasing from $7 to $11.50. Meanwhile, the price increase had not cooled down as press time data showed that UNI changed hands at $12.42.

This represented a 66.17% increase in the last 24 hours. However, indications from the RSI showed that UNI was overbought. But at the same time, the Bollinger Bands (BB) indicated extreme volatility.

If the buying pressure continues, UNI’s price might extend toward $15, But in a highly bearish condition, the token’s value might shrink to $11 where it faced a little setback before the climb to $12.

UNI/USD 4-Hour Chart (Source: TradingView)

CRV Eyes Another High

The CRV/USD 4-hour chart showed that the token climbed to $0.62 without any resistance. Should this trend remain the same, CRV’s price could jump to $0.80. A look at the Awesome Oscillator (AO) suggested increasing upward momentum as green histogram bars dominated the indicator.

However, if market participants decide to start booking profits, CRV’s price might decline to $0.55. But that seemed unlikely considering the bias displayed on the chart and signals shown by the Chaikin Money Flow (CMF).

At press time, the CMF reading had increased to 0.28. With CRV already breaking out, the CMF confirmed that the token had formed a bullish divergence. In this case, the price could continue to trend higher.

CRV/USD 4-Hour Chart (Source: TradingView)

AAVE Price Joins In

AAVE’s price action mirrored a similar structure to CRV. However, the difference between both structures was that AAVA faced resistance at $97.85. But after the price slipped to $94.36, bulls drove the value above $100.

As of this writing, AAVE’s price was $102.74. Coin Edition considered examining the Exponential Moving Average (EMA). From our observation, the 9 EMA was at $96.08 while the 20 (EMA) was at $94.44.

AAVE/USD 4-Hour Chart (Source: TradingView)

AAVE’s price breaking above both EMAs indicated that the trend could remain bullish in the short term. If this is the case, the token could rise to $110. However if the 20 EMA flips the 9 EMA, the price could retrace as it would suggest sellers’ dominance.

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