Uniswap price tanks as bulls drop ball, lose control

Uniswap (UNI) price sees bulls unable to trigger a close above a key technical level, scaring away those same bulls. As price action starts to print bigger negative numbers daily, risk could come as a falling knife as bearish pressure builds. The worst case would be a break below $5.00 and the low of November with $4.50 as the first big supportive level in hindsight, which comes along with over 20% of losses.

UNI sees its support failing big time

Uniswap price kicks back into a bearish mode as bulls were unable this week to keep the daily closes above the 200-day Simple Moving Average. That moving average counts as a line in the sand if UNI trades either in a bear market or would be able to shift away from it. Together with the element that the 55-day SMA has moved as well back below the 200-day SMA, it shows that the aspirations for a substantial rally have been fading quite rapidly. 

UNI has since then moved away to the downside and is breaking below $6.00. The monthly pivot is unable to give any support at all as it already has been chopped up so much in the first days of the month. With the Relative Strength Index (RSI) pointing to more downside as well, a quick correction toward the first $5.00 and next flirting with the low of November at $4.75 could materialize quite quickly.

UNI/USD daily chart

As the year ends, the last weeks of trading often happen in very quiet circumstances. Normally, the economic agenda starts to wind down, and certainly the last two weeks are very quiet with no central bank speakers and several parliaments closed for the holidays. That means some calmer markets could see UNI popping back above the 200-day SMA and hitting $7.50 on the upside by the end of this year.