Uniswap Faces Strong Rejection, Slips Below $10, What’s Next?

• 1 In the last few hours, Uniswap token faced rejection and slipped below the $10 mark.
• 2 It retested the 200 day EMA mark and seems to be in trouble.

The decentralized crypto exchange, Uniswap, displayed a negative move as it slipped to the 200 day EMA support zone, where it was rejected.

Last week, a bearish engulfing candlestick was made near the $12 mark and follow-on selloff led Uniwap price to breach its crucial support zone of $10 in the last few trading sessions.

After a range breakout last month, Uniswap continued to hover in a closed range, reflecting low demand. Moreover, it faced rejection from the $12 mark multiple times and is yet to cross that hurdle.

Until the $12 mark is breached, the sell-on-rise pattern will be continue to appear along with further drops.

At press time, the Uniswap token was trading at $8.96 with an intraday drop of 5.26%, reflecting neutrality on the chart. It has a monthly return ratio of -13.20% and 82.30% yearly, reflecting short-term consolidation.

The pair of UNI/BTC is at 0.000147 BTC, and the market cap is $7.94 Billion. Analysts are neutral and suggest that UNI could break out of a range and retain the mark of $3.

Uniswap Guides Selling Pressure: Could it Decline Further?

After breaking out of a range, Uniswap token price did not showcase impulsive bullish moves and displayed a lack of buying interest. Meanwhile, the sellers regained strength and continued to push the token from the $12 mark.

Amidst the volatility, the price action highlights sellers’ dominance. Once UNI slips below the 200 day EMA mark, a free fall toward the $6 mark is likely.

Source: Santiment

The Relative Strength Index (RSI) curve displayed a negative crossover and slipped below the midline region, highlighting a bearish trend.

Per the Fib levels, the token was in 23.6% -38.2% zone in the past few sessions and failed to cross the mid-bollinger band trajectory.

In terms of market cap, the token was ranked at 20 and had a total supply value of 1 billion. @Poseidon tweeted that UNI chart hadn’t shown a major selloff and was still in the range. It could deliver a bullish move ahead.

Source: X

Price Volatility and Weighted Sentiment Outlook

The weighted sentiment data highlighted a sudden rise and regressed in the last few sessions, revealing a speculative move. Notably, it displayed a decline of over 12% in the last few hours.

Source: Santiment

Meanwhile, the price volatility data was flat around the 0.02 mark, indicating stable trading activity in the past few hours.

The immediate support levels for the Uniswap token are $8.20 and $7.30, whereas the key upside hurdle is around $9.40 followed by $10.70.

The UNI token price regressed to the make-or-break zone around the 200 day EMA mark and indicated a rejection in the past trading sessions. Meanwhile, the token is still in the consolidation phase and has not seen any major declines yet.

However, if it fails to secure the 200 day EMA mark, a drop would be imminent, the token might retest the $7 mark ahead.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Adarsh ​​Singh

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.