After prolonged struggles near a crucial support level, Uni, the native token of Uniswap, a top-tier decentralized exchange, failed to hold this level and is now preparing for a price decline. This notable breakdown of support comes as the overall market begins to experience lower prices.
Investors transfer 5 million UN$
However, given the current market sentiment and the recent collapse of support, investors and long-term holders have taken the plunge. coinglass. Data shows that exchanges have recorded an inflow of $5 million from UNI in the past 24 hours.
In the cryptocurrency scene, flow refers to the movement of assets from wallets to exchanges, indicating dumping. These flows to exchanges can lead to lower prices and increased selling pressure.
Uniswap (UNI) price prediction and technical analysis
According to expert technical analysis, UNI fell below its crucial support level of $12.5, which has been tested more than four times in the past three months. However, on previous occasions when the price has reached this support level, UNI has seen buying pressure and upward momentum.
Since the support level was broken, the sentiment has turned towards the downside. Based on recent price action and historical momentum, there is a strong possibility that Uni could drop 22% to reach the next support level at $9.55.
However, the asset is still trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it remains in an uptrend.
When combining all these on-chain metrics and technical analysis, it appears that the bears are starting to take control, and the price may soon drop to the next support level.
Current price momentum
UNI is currently trading near $12.15 and has seen a price drop of over 7.90% over the past 24 hours. During the same period, participation from traders and investors declined, resulting in a 29% decline in trading volume.
