After prolonged battles around a crucial support level, UNI, the native token of Uniswap, a top-tier decentralized exchange, has failed to maintain that level and is now poised for a price drop. This notable collapse in support comes at a time when the overall market is beginning to experience a price decline.
Investors move $5 million worth of UNI to stock exchanges
However, given current market sentiment and the recent collapse in support, investors and long-term holders have been selling off their UNI holdings, the on-chain analytics firm said. Mint glass. Data shows that the exchanges recorded an inflow of $5 million to UNI in the last 24 hours.
In the cryptocurrency landscape, inflows refer to the movement of assets from wallets to exchanges, potentially indicating dumping. Such an influx on stock exchanges can lead to price drops and increased selling pressure.
Uniswap (UNI) price prediction and technical analysis
According to expert technical analysis, UNI has fallen below the crucial support level at $12.5, which has been tested more than four times in the last three months. However, on previous occasions when the price reached this support level, UNI experienced buying pressure and upward momentum.
Since breaking the support level, sentiment has shifted to a downward trend. Based on the recent price action and historical momentum, there is a strong possibility that UNI could fall 22% to reach the next support level at $9.55.
However, the asset is still trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it remains in an uptrend.
When all these on-chain metrics are combined with technical analysis, it appears that the bears have come to dominate and the price could soon drop to the next support level.
Current price momentum
UNI is currently trading around $12.15 and has experienced a price drop of over 7.90% in the last 24 hours. During the same period, trader and investor participation has declined, leading to a 29% drop in trading volume.