Uniswap Buys Competitor PONS Token…Is a Long-Term Alliance Beginning?

▲ Source: Uniswap X ©CoinReaders

Uniswap (UNI) purchased tokens of PONS, a memecoin issuance platform competing on the Robinhood chain, leading to strong gains for both tokens.

According to investment media FXStreet on September 4 (local time), Uniswap purchased PONS to secure an equity-like interest in PONS, citing long-term interest alignment. However, the transaction volume, purchase price, and wallet address were not disclosed, and the specific contract structure, including whether this transaction was an acquisition or a simple token distribution, has not been confirmed.

PONS has grown into a major memecoin issuance platform on the Robinhood chain. Tokens issued on the platform transfer liquidity to Uniswap V4 after passing through a bonding curve phase. Although PONS is in a competitive relationship with Uniswap Labs' pools.trade, which launched on the Robinhood chain last month, it utilizes Uniswap's liquidity infrastructure during transactions.

PONS surpassed $0.6800, reaching an all-time high, driven by increased fees on the PONS platform. Having entered a price discovery phase with no clear upper price range established, Uniswap's token purchase highlighted the potential for long-term cooperation between the two parties, boosting the upward trend.

UNI also continued its strong performance around $6.30. The price significantly exceeded both the 50-day Exponential Moving Average (EMA) of $4.2640, the 100-day EMA of $3.9145, and the 200-day EMA of $4.0034. The Relative Strength Index (RSI) entered the overbought zone at approximately 81, but the Moving Average Convergence Divergence (MACD) consistently rose above the 0 line, indicating sustained buying pressure.

If UNI definitively breaks above the high of $6.5690 established on December 28 last year, it could set a new yearly high and target the 127.2% Fibonacci extension level of $8.7227. Conversely, if a correction begins due to overbought conditions, the 78.6% Fibonacci retracement level of $5.2554 would be the first support. Subsequently, the 50-day EMA at $4.2640 and the 200-day EMA at $4.0034 are presented as defensive lines to prevent further declines.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*