- Uniswap breakdown seems unstoppable at the ascending parallel channel's lower boundary support.
- The bearish leg is likely to extend to $25 amid the hunt for formidable support.
- UNI's massive exodus by the whales adds weight to the overhead pressure.
- Support at the 50 SMA and 100 SMA on the 4-hour chart may lead to a rebound toward $30.
Uniswap is in the middle of a retreat after suffering yet another rejection at $30. The push to all-time highs around $34 has proved a hard nut to crack. The bullish front seems exhausted at the time of writing, especially with large volume holders preferring to offload their bags.
Overhead pressure mounts as Uniswap whales sell
According to Santiment, whales holding Uniswap have embarked on a selling spree, perhaps to cash out for profit amid the fear that declines may continue. For example, addresses containing between 1 million and 10 million UNI recently topped out at 65 but have now reduced to 63.
The drop's face value seems insignificant, but the volume moved by these whales is immense and enough to add to the selling pressure significantly. If the exodus continues in the coming days, investors show brace themselves for further dips.
Uniswap holder distribution
Uniswap technical picture worsens
The 4-hour chart brings to light an ascending parallel channel. Support at the channel's middle boundary has already been lost. The least resistance path seems downwards, especially with the Moving Average Convergence Divergence (MACD) flipping bearish.
It is worth noting that the MACD cross under the signal line may trigger massive selling orders, increasing the overhead pressure. This indicator helps identify positions to buy the dip and those where it is advisable to sell the top. A MACD line (blue) cross above the signal line signifies traders to sell the top.
UNI/USD 4-hour chart
Looking at the other side of the picture
If the lower edge of the channel fails to hold, Uniswap may extend the breakdown to $25, a tentative support area highlighted by the 50 Simple Moving Average (SMA) and the 100 SMA. Here, bulls are likely to take control and push to higher levels. Besides, a sustained break past $30 will open the door for gains beyond the record high.
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