- Uniswap is in unchartered territory with a bearish outlook at the moment.
- Key indicators show a likely surge is incoming in the next few weeks.
Uniswap (UNI) is not enjoying the best of times in the market in recent times as it has fallen by as much as 50% over the past month, a reverse gear shift that shows its core users are bearish on its price prospects. Despite playing a pioneering role in the Decentralized Exchange (DeFi) ecosystem, Uniswap has failed to move in tandem with some of its high-performing gear.
Uniswap In The Market: What The Charts Say
Uniswap has yet to recover from the lows of the long-drawn crypto winter. During this time, the price of UNI slipped from a high of $44.97 achieved on May 3, 2021, to a low of $3.76 attained over the past year.
Thus far this year, there has been an encompassing recovery in the market, however, it did not trickle down to Uniswap. On-chain data shows UNI has managed a 16.16% growth in the past 3 months. This surge stems from the 76.06% growth over the past 6 months. At the moment, the 50% monthly drop is judged as a stress test that can make or mar the token moving forward.
At the time of writing, Uniswap is changing hands for $7.54 after bagging a 1.33% drop over 24 hours. Determining the next direction for price hinges on different factors ranging from the broader market sentiment, its technical indicators, and the role of crucial key support and resistance points.
Investor sentiment is rebooting at the moment considering the general expectations that the just concluded Bitcoin halving event will help change market dynamics. The halving itself is negative news for miners whose rewards are now halved. However, the scarcity that is generated is poised to drive an enhanced price surge as spot Bitcoin ETF maintains demand.
If Bitcoin price soars, there are expectations that altcoins will join and Uniswap will benefit ultimately.
UNI Technicals and Support Points
At the time of writing, the Uniswap Relative Strength Index (RSI) is pegged at 33, showing it is almost oversold. This indicator shows there is a possibility of a trend reversal soon. The Moving Average Convergence Divergence is also currently crossed bearishly as showcased on the chart. If key indicators remain boosted, there may formally be a bullish cross-over that may also come with a price uptick.
At the moment, the UNI support zone is pegged at $6 while the Fibonacci resistance zone is pegged at $8.615 or $12. One major consolidation effort in view now is hinged on the factors boosting demand for UNI.
As the dominant Decentralized Exchange (DEX), Uniswap has continued to command intense volume across the board. Protocols like Base, Optimism, and Arbitrum are also driving massive volumes that can place upward pressure on prices.
Besides the unpredictable market switch, Uniswap’s only headwind according to an earlier report is the potential lawsuit that may be filed against the exchange by the United States Securities and Exchange Commission (SEC)
