Uniswap (UNI) Price Attempts to Find Support After SEC Investigation Win

Key Takeaways

• The Uniswap (UNI) price has fallen 60% since its cycle high of $19.47.
• The Securities and Exchange Commission (SEC) ended its Uniswap investigation.
• Can UNI stop the bleeding and gain some momentum after the positive news?
• Interested in buying or selling UNISWAP UNI coin? Read our review of the best exchanges to buy and sell UNISWAP UNI.

On Feb. 25, the Uniswap team announced that the SEC had closed its investigation without taking any enforcement action. The shift may have happened because of the leadership change, since former Chain Gary Gensler had a negative stance toward cryptocurrencies, while current chair Mark Uyeda is much more pro-crypto.

While the team considers this a big win for Decentralized Finance (DeFi), the UNI price did not react meaningfully to the positive news. On the contrary, UNI is approaching its yearly low. So, the key question is: Can the UNI price capitalize on this news and begin a rally, or will it fall to new lows? Let’s find out.

Uniswap Price Falls

The weekly time frame shows that the UNI price has fallen by 60% since its cycle high of $19.47 in December 2024. The decline confirmed that the high was just a deviation (black circle) above the $14.15 horizontal resistance area.

So far, UNI has fallen to a yearly low of $6.88 on Feb. 3, bouncing at a 483-day ascending support trend line. However, it could not sustain the increase and has nearly returned to its yearly low.

The support trend line is critical since a breakdown below it could take the UNI price back to the $4.20 horizontal support area, the final one before a new all-time low.

Technical indicators are bearish, indicating that the UNI price will break down. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both falling.

The former just decreased below 50 while the latter has nearly moved below 0, confirming the bearish trend.

As a result, the weekly time frame gives a decisively bearish UNI price prediction.

Can UNI Bounce?

While the weekly time frame is conclusively bearish, the daily one offers hope for a potential bounce. There are several reasons for this. Firstly, the decline is contained inside a descending parallel channel, which usually holds corrective movements.

The UNI price trades in the channel’s upper portion, making a breakout more likely. Additionally, the RSI and MACD have generated bullish divergences (orange), often leading to bullish trend reversals, and could trigger a breakout from the channel.

Looking for a safe place to buy and sell UNISWAP UNI? See the leading platforms for buying and selling UNISWAP UNI.

However, it is critical to note that the long-term wave count shows a completed A-B-C structure (green( that started in November 2023. This means the long-term trend is bearish, and any upward movements are corrective.

With that in mind, a breakout from the channel would likely lead to a lower high and the resumption of the downward movement.

The long-term wave count fits with the bearish readings from the weekly time frame. A breakdown from the ascending parallel channel will confirm that the downward trend has started.

Bearish Trend Ahead

The Uniswap price showed no positive reaction to the announcement of the SEC concluding its investigation. It remains to be seen if the price will react more favorably to the release of its Layer-1 blockchain Monad, which is still in its testnet phase.

The UNI long-term trend remains bearish, confirmed by a breakout from a long-term ascending support trend line.

While a short-term increase could occur, especially if the UNI price clears its descending parallel channel, it will likely be a relief rally that eventually leads to new lows.