Uniswap Price Prediction: UNI is on the verge of a drop to $3 as support fails to hold

On Sunday, November 15, Uniswap price climbed to the highest level it has been over the past two months. But as a new weekly trading session, it reversed its direction, losing more than 7%. Despite the significant losses incurred, UNI price sits on top of stable support that may keep falling prices at bay.

Significant bearish sign spotted on Uniswap's 1-day chart

The TD Sequential indicator presented a sell signal on Uniswap's 1-day chart, signaling that the two-week-old uptrend was getting exhausted and prices were poised to retreat. The bearish formation seems to have been validated as UNI is on the second day of a potential four-day correction before the uptrend could regather its bullish momentum.

Nonetheless, on-chain metrics show stiff support underneath this DeFi token.

UNI/USDT 1-day chart

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals Uniswap sits on top of a massive demand barrier. More than 15 million UNI had been bought by nearly 17,000 addresses between $3.38 and $3.49, making this area a possible last stop for the ongoing downward correction.

But if bears manage to drag the price below that region, the next target could be seen around $3, where 6,500 addresses acquired more than 13 million UNI. 

Areas of Interest Per IntoTheBlock's IOMAP 

On the flip side, bouncing off the $3.44 support level could lead to an upswing towards $3.85 since there is little to no resistance in between. Only a candlestick close above this supply wall will help invalidate the TD setup's bearish outlook and lead to greener pastures. But as long as it holds, the pessimistic scenario will prevail.