Wall Street really has put DeFi on the trading desk today. CME Group is set to launch $UNI futures on October 19 (trading day), as planned. Each standard contract represents 10,000 tokens, while each Micro contract represents 1,000, with cash settlement. This is CME’s first futures product specifically for a decentralized exchange token.
Some people piled in when it was officially announced on September 22, and it touched 10.94 on September 23. But as the launch drew near, the price was sold off all the way down: it’s fallen about 30% from that high, and has retraced roughly 20% over the past two weeks. Some on-chain observers say it’s in a distribution phase, and Binance spot has also seen inflows pick up. And to put it bluntly: once futures go live, shorting gets easier too, so don’t expect an automatic rally on launch day.
The market first dipped, then recovered. It plunged to 6.81 at around 3 a.m. and has since clawed back to around 7.43. Twenty-four-hour trading volume is about 32 million U, putting it fourteenth in spot trading volume. The October 13 daily low of 6.74 is still holding as support.
My own game plan: scale in a little at 7.15–7.30, and keep a second entry level at 6.74–6.85 to catch a wick like the one overnight. If the daily candle closes below 6.70, I’ll admit I’m wrong. On the upside, I’m watching today’s high of 7.49 first; if it holds above that, then 7.85, and beyond that, 9.08 around October 5. Institutions being able to hedge doesn’t mean spot will explode higher right away, but the liquidity pool has definitely grown.
Do you think CME opening the gates is a bullish catalyst finally playing out, or does it just make it easier for both bulls and bears to trade in the short term? If you want to follow along, check the $UNI trading card below against the chart.
Some people piled in when it was officially announced on September 22, and it touched 10.94 on September 23. But as the launch drew near, the price was sold off all the way down: it’s fallen about 30% from that high, and has retraced roughly 20% over the past two weeks. Some on-chain observers say it’s in a distribution phase, and Binance spot has also seen inflows pick up. And to put it bluntly: once futures go live, shorting gets easier too, so don’t expect an automatic rally on launch day.
The market first dipped, then recovered. It plunged to 6.81 at around 3 a.m. and has since clawed back to around 7.43. Twenty-four-hour trading volume is about 32 million U, putting it fourteenth in spot trading volume. The October 13 daily low of 6.74 is still holding as support.
My own game plan: scale in a little at 7.15–7.30, and keep a second entry level at 6.74–6.85 to catch a wick like the one overnight. If the daily candle closes below 6.70, I’ll admit I’m wrong. On the upside, I’m watching today’s high of 7.49 first; if it holds above that, then 7.85, and beyond that, 9.08 around October 5. Institutions being able to hedge doesn’t mean spot will explode higher right away, but the liquidity pool has definitely grown.
Do you think CME opening the gates is a bullish catalyst finally playing out, or does it just make it easier for both bulls and bears to trade in the short term? If you want to follow along, check the $UNI trading card below against the chart.
