Uniswap price could be on the verge of a reversal, suggest technical patterns

Uniswap price seems to be currently bounded inside a potential head-and-shoulders pattern.
UNI could be aiming for a pullback as market investors grow greedy.

UNI is currently trading at $3.68 after a significant dip in the price to $3.38 as the entire market collapsed but managed to recover almost instantly. It also seems that the digital asset is trading inside a potential head and shoulders pattern with the neckline at $2.95.

Uniswap price might be poised for a correction

It seems that on the 4-hour chart, Uniswap price has formed a potential head-and-shoulders pattern, which is a bearish figure. If the pattern is confirmed, the right shoulder should take UNI towards $2.95.

UNI/USD 4-hour chart

A breakdown below the neckline support at $2.95 could drive Uniswap price to the psychological level of $2. Additionally, some on-chain metrics have also turned bearish for Uniswap.

Uniswap Network Growth chart

It seems that the network growth of Uniswap has suffered a significant decline that started around November 17 dropping by more than 50% even though the price has remained relatively stable since then.

UNI/USD 12-hour chart

On the other hand, on the 12-hour chart, bulls have been able to defend the 100-SMA at $3.5 establishing a potential higher low compared to $3.1 and aiming to hit a higher high above $3.98, which would confirm an uptrend.

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