Uniswap Price Prediction: UNI could drop 15% to 30% if crucial support barrier caves in


Share:
  • Uniswap price crash could extend by 10% if a crucial support barrier at $23.45 is breached.
  • Transactional data shows a concentration of buyers around the $21.21 price level.
  • A bullish scenario might come into play if the 78.6% Fibonacci retracement level at $26.31 holds.

Uniswap price gains of 580% could come undone if the market-wide sell-off continues. At the time of writing, UNI is trading just above a critical support level at $23.45, waiting to establish a clear trend.

Uniswap price walks on eggshells

Uniswap price recently crashed by a whopping 33% from an all-time high due to a Bitcoin-led crash. Since then, UNI has recovered 10%, but the bearish momentum keeps chipping away at its market value.

While the initial panic among retail traders has simmered down, the constant selling pressure has pushed the DeFi token under the 78.6% Fibonacci retracement level at $26.31.

UNI/USDT 12-hour chart

UNI/USDT 12-hour chart

According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, $23.45 will be critical in determining UNI’s fate. Here, roughly 96 addresses purchased 12.5 million UNI. A 12-hour candlestick close below this barrier will put these investors “Out of the Money,” forcing them to sell their holdings to prevent further losses.

Such development will add to the already bearish momentum pushing Uniswap prices down by 10% to $21.21. This level coincides with the 50 twelve-hour moving average (MA) and the 61.8% Fibonacci retracement level.

Based on IOMAP’s transactional data, 11,700 addresses hold 10.6 million UNI here. Hence, these investors will act as a cushion to the incoming selling pressure. However, an unforeseen spike in selling pressure leading to a breakdown of this support could be disastrous and push UNI down to another 15% to $17.38 or the 50% Fibonacci retracement level.

Uniswap IOMAP

Uniswap IOMAP

Regardless of the bearish outlook, investors should note that a bounce from the $23.45 level is plausible. A build-up of buying pressure here could prevent the reversal altogether and push Uniswap to retest its all-time high at $33.


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

ApeCoin community is currently voting on three proposals to increase the adoption of the asset among market participants through higher engagement. APE’s recent token unlock and the active proposals could influence APE price in the coming weeks and months. 

More APE News

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

Circle announced plans to discontinue USDC on the TRON blockchain in a phased manner. USDC issuer will no longer mint the stablecoin on TRON, effective Wednesday. Circle stated that its decision is a part of risk management and USDC will remain safe with the change.

More Cryptocurrencies News

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap v2 enables swaps on six chains and users can access it from a single interface. UNI price declined nearly 4% on Wednesday to $7.309. UNI price could revisit 2024’s peak at $7.972 as on-chain metrics support uptrend.

More Cryptocurrencies News

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO Brad Garlingouse commented on the SEC v. Ripple lawsuit and a potential XRP ETF. The payment remittance firm recently acquired Standard Custody to venture into the crypto custodian business. 

More Ripple News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP