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Uniswap (UNI) Price Drops 40% as Bears Dominate — Recovery Looks Tough

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Victor Olanrewaju
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Key Takeaways

  • UNI’s price has dropped by 40% and still trades within a descending channel.
  • On-chain data shows that UNI holders are continually selling the cryptocurrency.
  • The RSI reveals bearish momentum, showing that UNI might struggle to rebound.

Uniswap’s (UNI) price just hit its lowest level since Nov. 22, 2024, following a brutal 40% drop over the past month.

Despite some attempts at recovery, UNI is struggling to regain the momentum it had in December. As it stands, UNI bears do not seem ready to loosen their grip on controlling the token’s direction yet.

If this remains the same, here is the impact it could have on the Uniswap token price.

UNI Trend Reversal Remains Uncertain

Between November and December last year, UNI price rallied by over 170% and hit $18.69. This price increase happened as demand for the token surged amid rising altcoin dominance.

However, as of this writing, Uniswap’s price trades below $10, which aligns with CCN’s prediction some weeks back. According to the daily chart, UNI dropped below the $10 threshold because it is trapped in a descending channel.

A descending channel is a bearish pattern formed by two parallel falling trendlines which indicates lower highs and lower lows.

From the image below, the downtrend accelerated after UNI struggled to rise above the resistance at $15.02. Besides that, bulls also tried to defend the price at $12.94.

Uniswap price analysis
UNI/USD Daily Chart | Credit: TradingView 

However, it did not materialize as UNI bears successfully breached the support line. Furthermore, the Moving Average Convergence Divergence (MACD) reading is negative, indicating bearish momentum.

Should this remain the same, then UNI’s price might trade much lower in the short term.

From an on-chain perspective, the Coins Holding Time supports the bearish outlook. This metric tracks how long investors hold a cryptocurrency before selling or transferring it.

UNI bears drive increased selling pressure
UNI Coins Holding Time | Credit: IntoTheBlock 

A rising holding time indicates strong conviction, as holders are reluctant to sell. However, a decline suggests increased selling pressure.

According to IntoTheBlock, UNI’s Coins Holding Time has dropped significantly. If this continues, UNI’s price could continue falling.

UNI Price Prediction: $7 Retest is Possible

On the 4-hour chart, the Relative Strength Index (RSI) is below the 50.00 neutral line. Using the size and speed of price changes, this RSI reading indicates that the momentum around UNI is bearish.

As such, UNI bears might continue to dictate the price direction. Besides that, UNI’s price is near the 0.236 Fibonacci retracement level.

With weak momentum and lack of intense buying pressure, the token might fall below the support floor positioned at $8.94.

If validated, then the next target for UNI’s price to reach might be $7.  However, if UNI bears lay their guard down, this trend might change.

Uniswap price analysis
UNI/USD 4-Hour Chart | Credit: TradingView 

In that scenario, bulls might capitalize and drive the token’s price upwards. Should this happen, then Uniswap’s price might rally to $12.01. If it breaches this level, then the cryptocurrency’s value could climb to $13.49 near the 0.786 Fibonacci level.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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