Uniswap (UNI) Support Breakdown, Warning Sign for Traders?
After a prolonged struggle near a key support level, UNI, the native token of top decentralized exchange Uniswap, failed to maintain the level and the price is now expected to fall. This significant drop in support comes at a time when the entire market is starting to experience price declines.
Investors transfer $5 million worth of UNI to the exchange
However, investors and long-term holders have sold off their UNI holdings given the current market sentiment and the recent collapse of support, according to on-chain analytics firm coin glass. Data shows that the exchange recorded $5 million worth of UNI inflows in the past 24 hours.
In the cryptocurrency world, inflows refer to the movement of assets from wallets to exchanges and may indicate dumping. Such inflows into exchanges can cause prices to fall and increase selling pressure.
Uniswap (UNI) Price Prediction and Technical Analysis
According to expert technical analysis, UNI has fallen below the key support level of $12.5, which has been tested more than four times in the past three months. However, in previous instances, UNI experienced buying pressure and upward momentum when the price reached this support level.
Since breaking the support level, market sentiment has turned to the downside. Based on recent price action and historical momentum, UNI has a good chance of falling 22% to the next support level at $9.55.
However, the asset is still trading above the 200 exponential moving average (EMA) on the daily time frame, indicating that it is still in an uptrend.
When combining all of these on-chain indicators with technical analysis, it appears that the bears have begun to take over and the price may soon fall to the next support level.
Current Price Momentum
UNI is currently trading near $12.15, with the price down by more than 7.90% in the past 24 hours. During the same period, trader and investor participation declined, resulting in a 29% drop in trading volume.
