With Uniswap’s price failing to hold key support levels, technical indicators suggest further selling pressure | Credit: Derek Fenech
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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.
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.
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.
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.
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.
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.
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