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Uniswap Faces Bearish Headwinds—UNI Risks Dropping Below $10

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Victor Olanrewaju
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Key Takeaways

  • UNI is on the brink of dropping below the support line of the descending triangle.
  • The altcoin faces could fail to surpass $13 due to a waiting sell-wall at that point.
  • Analysis of the 4-hour chart shows that UNI’s price might slide under $11 soon.

Uniswap (UNI) has been caught in a wave of bearish pressure, mirroring the broader trends across the crypto market.

The governance token of Ethereum’s largest decentralized exchange has dropped to $12.70, marking a 25% decline over the past month.

With UNI struggling to hold key support levels, will it reverse the trend, or is it on the brink of a deeper plunge?

The UNI Token Hits a Roadblock

According to the daily chart, UNI’s price reached a local high of $18.68 on Dec. 9, 2024. Since then, the token has been trading within a descending triangle.

A descending triangle is a pattern that occurs during a market downtrend. It is formed when a series of lower highs converges with a flat or declining support level.

As the price continues to make lower highs, the pattern suggests that selling pressure is increasing and typically indicates that the downtrend might continue.

For UNI, the price is at the key support level, which was vital to the rally, at $18.68 in December. However, the Moving Average Convergence Divergence (MACD) has dropped to the negative region.

This drop indicates bearish momentum around UNI. The Chaikin Money Flow (CMF) has also followed the MACD trend, reinforcing strong selling pressure.

UNI price chart bearish
UNI/USD Daily Chart | Credit: TradingView

If sustained, then UNI’s price might fail to bounce off the lows anytime soon.

From an on-chain perspective, IntoTheBlock data also shows that UNI’s price could face resistance between $13.51 and $13.81.

According to the In/Out of Money Around Price (IOMAP) metric, approximately 2,720 addresses are holding over 400 million UNI tokens at unrealized losses in this price range.

This significant volume could act as a potential resistance zone , as holders may look to offload their token to break even if the price rebounds. Thus, such selling pressure could hinder UNI’s ability to sustain a recovery as it further strengthens the bearish momentum.

UNI price encounters resistance
UNI In/Out of Money Around Price | Credit: IntoTheBlock

UNI Price Prediction: No More Double-Digit Value?

Moreover, the 4-hour chart aligns with the signals shown on the daily chart. According to the image below, the last time UNI’s price fell from the $12.60 support, it cratered to the $11 region.

However, around that period, the broader market condition was better, and Bitcoin’s (BTC) price was not below $92,000. Therefore, if momentum remains weak, UNI might drop below this region.

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

In that scenario, the token’s value might sink to $8.50. However, if UNI bounces off the $11 support, this trend might change. If that is the case, the altcoin might rally toward $17.

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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