- On-chain statistics showed that the exchanges have seen UNI inflows worth $10.20 million
- UNI was still trading above the 200 EMA at the time of writing
Amid the general volatility of the broader market, UNI, the native token of Uniswap, the world’s leading decentralized exchange, could be poised for a significant price drop. This was due to the price action forming bearish price patterns on the daily charts.
Uniswap (UNI) technical analysis and price action
According to AMBCrypto’s analysis, UNI has recently failed to maintain the crucial support level at $12.50 – a price level it had maintained for the past three months. During this period, the token retested this level more than four times, registering upward momentum each time.
Source: TradingView
However, after this support level disappeared, sentiment for UNI dropped. This could soon cause a significant price drop in the charts.
Based on the altcoin’s recent price action and historical momentum, there is a strong possibility that UNI could fall by 20% to reach the psychological level of $9.50.
However, it is worth noting that despite the recent bearish trend, UNI has been trading above its 200 Exponential Moving Average (EMA) on a daily basis. Simply put, the altcoin is in something of an uptrend despite its price performance.
$10.20 million in UNI inflows
Following the latest breakdown and bearish chart pattern, investors and long-term holders saw their holdings dumped on exchanges, reports on-chain analytics firm Coinglass. In fact, the spot inflows/outflows data showed that the exchanges recorded UNI inflows worth $10.20 million in the last 24 hours alone.
This indicated a possible dump, which could fuel selling pressure and lead to further price declines on the charts.
Uniswap’s upcoming upgrade
Curiously, this bearish outlook for UNI comes at a time when Uniswap’s long-awaited v4 upgrade is scheduled for the coming week. On January 22, Uniswap labs announced on X (formerly Twitter) that v4 deployments would begin rolling out this week, allowing builders to test hooks and integrations on-chain.
Source: X (formerly Twitter)
The project also revealed that all contracts are expected to be deployed for a full launch next week. This upgrade is expected to improve Uniswap’s core infrastructure and liquidity provision.