A sideways range with resistance at USD 13 and support at USD 10 does not define who dominates the market in the short term. The downward trend of UNI does not show signs of exhaustion after the price drop in the last three months.
Despite the market rally, the token of decentralized exchange Uniswap has remained dormant. However, it seems that its price could continue to fall in the short term.
UNI is trading at around USD 9.90 and has accumulated a 7% loss in the last week. Its trading volume is above USD 378.23 million, and its market capitalization is about USD 4.51 billion, according to CoinGecko.
That cryptocurrency occupies 33rd place in the market ranking after being in the top 10.
The significant correction of the token since its price reached its all-time high of USD 45 has reduced its volatility considerably.
Although that fall worries some people, it is a necessary corrective process. As that movement in the price spreads, sellers have less room to continue dragging the price down.
The value of UNI does not seem to indicate clear signs of bearish exhaustion, so there could be problems for a longer time.
The following analysis provides details about the current situation of the price of that crypto asset.
Daily Technical Analysis of the Price of the Uniswap Token
The daily UNI/USDT chart clearly shows that the price is in a sideways range with resistance at USD 13 and support at USD 10.
If the value remains within those levels, it cannot define who will dominate the market in the short term.
However, that is consolidation after a bearish momentum, so it may be a respite before suffering a new drop. To confirm that, the price of UNI must break through the support level. If that happens, then there could be sales up to USD 7.32.
If the value breaks above USD 13, there could be a rally to USD 18 next.
The Price of UNI Could Drop to an Even Lower Level
The weekly UNI price chart indicates an abrupt medium-term bearish direction. The significant correction that the Uniswap token is going through after reaching a high of USD 45 caused it.
In 2021, UNI was one of the cryptocurrencies whose price rose the most but also suffered many corrections.
A marked downward trend emerged due to the token value falling in the last three months. At the moment, that movement in the price does not seem to show any signs of exhaustion.
Currently, there seems to be a little respite, but it may soon give rise to new bearish momentum.
The immediate support of the price of the Uniswap token is at USD 10. If it loses it, the ground will be clear for USD 5.65.
When increasingly high lows and highs appear on the weekly chart, it will be possible to think that the bulls have regained control of the trend.
Looking to the left, it is clear that the strength of buyers is quite dominant, but they are not back yet. As discussed above, sellers have less room to drag the price down as the decline extends.
By Alexander Salazar
