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Uniswap V4 Upgrade Looms, Yet UNI Price Faces Sub-$10 Threat

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Victor Olanrewaju
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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.

No Support for UNI Price Despite Upcoming Upgrade

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 price faces stiff resistance
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.

UNI price analysis hints at correction
UNI/USD Daily Chart | Credit: TradingView 

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.
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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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