Uniswap’s V4 upgrade announcement hasn't sparked the expected surge for UNI price | Credit: Derek Fenech
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Key Takeaways
UNI price falls even though the protocol has scheduled the V4 upgrade for next week.
Major resistance lies at an average price of $13.49, which could trigger selling pressure.
UNI price drops below the 20 and 50 EMAs, predicting an accelerated downtrend.
Five days after sliding under $13, the Uniswap (UNI) price bounced above $15 on Jan. 18. Three days later, the largest decentralized exchange on Ethereum revealed that the much-anticipated V4 upgrade will finally happen this week after a long wait.
Despite the announcement, UNI’s price failed to react positively. Instead, the cryptocurrency fell under $13 again.
While some UNI holders may hope for a rebound, this analysis suggests that the altcoin could continue wiping out gains accumulated earlier in the month.
The Uniswap v4 upgrade dates back to June 2023. During that period, the protocol mentioned that the upgrade was meant to improve its core infrastructure and liquidity provision.
Since then, the community had anticipated full deployment, but it didn’t materialize.
However, on January 21, Uniswap announced that the v4 upgrade to Mainnet is now ready and will go live next week.
“v4 deployments will begin rolling out this week for builders to test hooks and integrations on-chain. We expect all contracts to be deployed for a full launch next week.” The protocol stated via X (formerly Twitter)
In June 2023, the upgrade announcement drove UNI’s price from $4 to $6 in less than a month. This time, a similar performance will not likely happen.
One reason for this prediction could be linked to the In/Out of Money Around Price (IOMAP). The IOMAP identifies where many addresses have purchased tokens and areas where they could sell them.
As a result, these levels are expected to act as strong support or resistance. Typically, the higher the volume of tokens in unrealized gains, the stronger the support.
On the other hand, if a higher volume of tokens is out of the money, it indicates resistance.
According to IntoTheBlock, UNI faces significant resistance between $13.30 and $13.67. At this price range, 3,640 addresses have accumulated over 400 million tokens.
UNI In/Out of Money Around Price | Credit: IntoTheBlock
This volume is higher than the total number of tokens purchased, which is between $10.65 and $12.51.
As UNI approaches this level, it may encounter increased selling pressure, potentially triggering a pullback. This could send UNI’s price below $10 in the short term if validated.
UNI Price Prediction: Another Price Drop Could be Close
From a technical perspective, UNI’s price is below two key Exponential Moving Averages (EMAs): the 20 EMA (blue) and the 50 EMA (yellow).
Generally, the EMA is a technical indicator that spots and confirms trends. When the indicator is below the price, the cryptocurrency might trade higher.
But in UNI’s case, the price has slid below both indicators. Due to this position, the altcoin might drop to the 0.236 Fibonacci retracement point at $9.65.
If selling pressure increases, the downturn could worsen as UNI’s price might decline to $6.61.
On the flip side, if the token bounces off the 0.382 Fib level at $11.53, it might drop below $10. Instead, the price might rise toward the $20 mark.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
