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UNI faces resistance at 20-day EMA following BlackRock's purchase and launch of BUIDL fund on Uniswap

  • Uniswap's UNI token defied the broader crypto downtrend, rising 40% before tapering some of those gains.
  • The surge follows the launch of BlackRock's tokenized BUIDL fund on Uniswap.
  • The asset manager also purchased an undisclosed amount of UNI tokens.

Decentralized exchange Uniswap (UNI) announced on Wednesday that it has integrated asset manager BlackRock's tokenized Treasury product on its trading platform via a partnership with tokenization firm Securitize.

According to a statement, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is accessible to investors on UniswapX, a platform that aggregates liquidity across several sources for onchain settlement.

However, the launch comes with a few restrictions. Only investors pre-approved by Securitize can trade BUIDL shares onchain, leveraging quotes from a select list of whitelisted market makers, including Flowdesk, Tokka Labs, and Wintermute.

"For the first time, institutions and whitelisted investors can access technology from a leader in the decentralized finance space to trade tokenized real-world assets like BUIDL with self-custody," said Securitize CEO Carlos Domingo.

BlackRock also noted that it made a "strategic investment" in the Uniswap ecosystem, which Fortune later confirmed as the purchase of an undisclosed amount of UNI tokens.

"The integration of BUIDL into UniswapX marks a major leap forward in the interoperability of tokenized USD yield funds with stablecoins," said BlackRock Global Head of Digital Assets Robert Mitchnick.

BUIDL launched on the Ethereum blockchain in March 2024 as BlackRock's first tokenized product, a few months after the asset manager debuted its spot Bitcoin ETF (IBIT). Since then, it has amassed $2.36 billion in assets under management and expanded to several chains, including Arbitrum, Solana, BNB Smart Chain, Avalanche and Aptos, per DefiLlama data.

Following the announcement, Uniswap's native token UNI surged by more about 40% in the early American trading hours before tapering some of those gains.

The token is up nearly 9% over the past 24 hours, while the broader crypto market is posting losses at the time of writing.

Uniswap Technical Analysis: UNI faces resistance at $4.68 and 20-day EMA

On the daily chart, UNI/USDT trades at $3.68. The 20-day Exponential Moving Average (EMA) slopes lower, preserving a downside bias. Price remains capped beneath the average, and rebounds would stay fragile until a daily close reclaims it. Immediate resistance aligns at $4.68, and a clear break above that barrier could improve the short-term tone and push UNI toward $6.09.

UNI/USDT daily chart

Support is seen at $2.90. As long as UNI holds above that floor and momentum improves, recovery attempts could extend. However, a breach of the support could push the token toward $2.09.

The Relative Strength Index (RSI) and Stochastic (Stoch) have turned up from oversold territory and advance toward their neutral levels, reinforcing a tentative stabilization backdrop hinting at easing bearish pressure. On the flipside, the recovery could be short-lived, considering the underlying bearish structure in the wider crypto market.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

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