Uniswap (UNI), a prominent decentralized exchange token, is bracing for further declines as the broader cryptocurrency market experiences a significant downturn. Recent market trends indicate a continuation of bearish momentum, which has negatively impacted UNI’s price.
Several factors, including macroeconomic uncertainties, regulatory pressures and shifts in investor sentiment, are contributing to this ongoing downward trend. As Uniswap’s price breaks through key support levels, the likelihood of additional losses increases.
This article looks at UNI’s price analysis using technical indicators to determine the expected decline and provide insight into what traders and investors can expect in the coming days.
Uniswap’s price has risen 4.60% to trade at around $9,873 over the past 24 hours, with a market cap of over $5.9 billion and a trading volume of over $356 million at the time of writing. UNI’s market capitalization and trading volume also increased by 4.28% and 19.98% respectively.
UNI is building bearish sentiment
On the 1-hour chart, UNI is trying to break below the 100-day Simple Moving Average (SMA) as it has failed to break above the bearish trendline. Here it can be suggested that Uniswap could disappear bearish.
The 1-hour Composite Trend Oscillator also indicates that UNI’s price could break below the 100-day SMA and turn bearish as both the signal line and SMA crossed and headed towards the zero line. Based on this Relative Strength Index (RSI) formation, it can be assumed that UNI could turn bearish if it were to fall below the 100-day SMA.
Meanwhile, on the 4-hour chart, UNI’s price is trading below the trendline and the 100-day SMA. UNI price is also trying to drop a bearish 4-hour candlestick.
Although the 4-hour composite trend oscillator indicates that UNI may turn bullish, the price will certainly rise and start falling again in the short term. The signal line and the SMA line are moving towards the zero line, but this has been going on for a while.
Support levels to look out for
As the price from UNI drops below the 1-hour 100-day simple moving average, it will start moving towards the $8,748 support level. It could fall even further to test the USD 7,557 support level if it settles below the above-mentioned level.
However, if Uniswap were to reverse course at any of the previously mentioned support levels, it would start rising towards the $10,381 resistance level. If the price crosses this resistance level, it could be ready to test the $11,801 mark and perhaps much higher to test other levels.
Featured image from Adobe Stock, chart from Tradingview.com