Uniswap Price Forecast: UNI technicals and on-chain metrics spell trouble

  • Uniswap price hints at pullback as the TD Sequential indicator flashed a sell signal on the weekly chart.
  • UNI network saw a reduction in new users joining the network, further supporting the bearish thesis.
  • The reversal in Uniswap’s momentum could extend if the support barrier at $20 is breached.

Uniswap price witnessed a remarkable 580% upswing in roughly 46 days. However, this parabolic rally could be reversing soon due to multiple sell signals being flashed on both the technical and the on-chain metrics.

Uniswap price primed for a downswing

Uniswap price shows almost every weekly candlestick closed at least 30% higher than its open since December 28. However, the previous weekly candlestick noted only a 5.7% upswing, which suggested a slowdown in UNI’s momentum.

Rightfully so, what followed next is the sell-signal from the Tom Demark (TD) Sequential indicator in the form of a green nine candlestick. This technical setup forecasts a correction that ranges anywhere between one to four weekly candlesticks.

UNIUSDT 1-week chart

UNIUSDT weekly chart

Adding to UNI’s bearish woes is the reduction in the number of new users joining the Uniswap network. This metric stands at 3,500 today, which is a 41% decline in new addresses since January 31.

The sudden drop in this on-chain metric indicates that market participants are not interested in purchasing UNI tokens at the current price levels.

Uniswap new addresses chart

Uniswap new addresses chart

As per IntoTheBlock’s Global In/Out of the Money (GIOM) model, the support barrier at $20 is the only one holding Uniswap price from a steep crash. Here, roughly 19,300 addresses purchased nearly 33 million UNI. 

In the event of a sharp sell-off leading to this support’s failure, Uniswap price will pullback to the next immediate support at $15, where approximately 12,000 addresses purchased about 26.5 million UNI.

Uniswap IOMAP chart

Uniswap IOMAP chart

It is worth mentioning that if Uniswap price slices through the recent high of $23.80, the bearish outlook will be disregarded. Under such unique circumstances, UNI could rise towards the next interest areas at $30 and $37.50. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum bulls eye $2,500 after shattering crucial resistance level

Ethereum price closed well above the MRI's breakout line at $2,345, suggesting a massive bullish momentum in play. Whales are accumulating non-stop, which hints at their interest in ETH at current price levels. A bullish divergence between the number of daily active addresses and exchange deposits reveals a move to $2,500 shortly.

More Ethereum news

Chainlink adoption soars, but LINK price may retrace before setting up new all-time highs

Chainlink Network will now receive high-quality price feeds from traditional markets via data provider New Change FX. LINK price shows signs of exhaustion as the MRI flashed a cycle top signal. A minor retracement will arrive before a climb to record levels.

More Chainlink news

Algorand vies for 85% advance upon the breach of its consolidation

Algorand price is traversing a bullish pennant, hinting at an 85% upswing to $2.83. A decisive close above $1.53 will signal a breach of the pennant’s upper trend line. ALGO will kick-start a new downtrend if it slices through the 50% Fibonacci retracement level at $1.03.

More Algorand news

Bitcoin on-chain data shows BTC is reaching “peak hype,” signaling short-term consolidation

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally.  Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

More Bitcoin news


Bitcoin Weekly Forecast: SEC commissioner cozies up to BTC ETF, on-chain metrics reset making way for volatile move

Bitcoin’s mainstream adoption has soared over the last couple of months, with institutions like Visa, Goldman Sachs, Morgan Stanley, and others dipping their toes in the BTC markets. Likewise, prices look primed to advance further despite the ongoing consolidation phase.

Read the weekly forecast