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 impacted UNI’s price negatively.
Several factors, including macroeconomic uncertainties, regulatory pressures, and shifts in investor sentiment, are contributing to this extended downtrend. As Uniswap’s price breaks key support levels, the likelihood of additional losses increases.
This article delves into UNI’s price analysis with the help of technical indicators to determine the anticipated decline and provide insights into what traders and investors might expect in the coming days.
The price of Uniswap has increased by 4.60%, trading at about $9.873 in the last 24 hours, with a market capitalization of more than $5.9 billion and a trading volume of more than $356 million as of the time of writing. UNI’s market cap and trading volume were also up by 4.28% and 19.98%, respectively.
UNI Builds Bearish Sentiment
On the 1-hour chart, UNI is attempting to move below the 100-day Simple Moving Average (SMA) as it has failed to move above the bearish trendline. It can be suggested here that Uniswap might go bearish.
The 1-hour Composite Trend Oscillator also signals that the price of UNI might break below the 100-day SMA and go bearish as both the signal line and SMA crossed and are heading toward the zero line. From this Relative Strength Index (RSI) formation, it can be considered that UNI might go bearish if it moves below the 100-day SMA.
Meanwhile, in the 4-hour chart, UNI’s price trades below the trendline and the 100-day SMA. The price of UNI is also attempting to drop a bearish 4-hour candlestick.
Although the 4-hour composite trend oscillator indicates that UNI may go bullish, the price will certainly move upward on a short-term note and begin to decline again. The signal line and SMA line are heading toward the zero line, but this has continued for a while.
Support Levels To Watch Out For
If the price of UNI drops below the 1-hour 100-day simple moving average, it will begin to move towards the $8.748 support level. It may even decline more to test the $7.557 support level if it breaks below the abovementioned level.
However, if Uniswap were to change course at any of the previously mentioned support levels, it would begin to rise toward the resistance level of $10.381. If the price breaches this resistance level, it might be poised to test the $11.801 mark and perhaps much higher to test other levels.
Featured image from Adobe Stock, chart from Tradingview.com
