Unifi Protocol price has gone parabolic. Is UNFI a good buy?

Unifi Protocol price has been in a strong bullish trend in the past few days. The coin jumped to a high of $7.18, which was the highest level since June 14th this year. It has risen by more than 52% from its lowest level this month. Its total market cap has jumped to more than $36 million, making it the 473rd biggest cryptocurrency in the world.

What is Unifi Protocol?

Unifi is a small and fast-growing blockchain project that is creating a platform for seamless interoperability of Web3 applications across multiple chains.

Unifi’s primary product is known as uTrade, which is a trading platform that is known for fast execution and low fees. uTrade’s fees go to liquidity providers, making it ideal for people looking to launch new tokens. It also has staking features that are already live on popular blockchains like Harmony, IoTeX, Ethereum, and BNB Chain. 

Unifi developers are also working on lending, NFTs, and cross-chain bridging solutions to its network. Most recently, they introduced the platform to Avalanche, the smart contract platform known for its blazingly fast transaction processing speeds. The features available in Unifi’s Avalanche platform are single-side liquidity, user-added listings, token routing, and developer-friendly smart contracts.

The Unifi price is rising after the developers announced that they will not be launching V2 on Harmony. This announcement came a few days after Harmony announced that a major hack had happened in its platform. Aave will still be the custodian to generate yield from the reserve fund.

It is also rising after Binance made it possible to buy UNFI token in its platform using a debit card. This is notable since Binance is still the biggest company in the crypto industry.

Unifi Protocol price prediction

The 45-minute chart shows that the UNFI price has gone parabolic in the past few hours. This rally saw the coin rush to a high of $7.20, which was the highest level in days. It has now pulled back and is trading at $6.22. 

A closer look shows that the coin has formed what looks like a double-top pattern whose chin is at $5.65. In price action analysis, this pattern is usually a bearish sign. It remains slightly above the 25-period and 50-period moving averages.

Therefore, there is a possibility that the token will have a major bearish breakout in the coming days as investors take profit.