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Uniswap (UNI) broke major support – Next support at $14

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Uniswap (UNI) suffered from a major pullback as Bitcoin fell below $30,000. Uniswap fell to as low as $16 in the daily timeframe while the high for the day was at $30. At the time of writing, Uniswap was trading hands at $24 apiece. The price had been falling sharply with a nearly 20% fall in the past twenty-four hours. On the other hand, the daily trading volume has gone up by 150%.

Uniswap (UNI) Technical Analysis

The market sentiment for Uniswap continues to be bearish. Out of the twenty-six technical indicators, thirteen are giving out a sell indication with nine standing on a neutral position and only four indicators giving out a buy signal. The oscillators are neutral while the moving averages are strongly bearish.

Uniswap (UNI) Technical Analysis
Uniswap (UNI) Technical Analysis

Uniswap coin was operating in an ascending channel formation earlier; however, the bearish downtrend in the market has resulted in the cryptocurrency breaking out of the channel to the downside.  A trader had identified the price level of $24 as strong support which can lead Uniswap back towards the safe zone and, hopefully, to the channel formation. But the bears are in control of UNI crypto at the moment and Uniswap could not establish $24 as a support level. In the coming days, UNI coin will be testing other major support levels at $14 followed by $9.

Will Uniswap (UNI) go upwards?

Uniswap (UNI) is one of the most popular decentralized exchanges or automated market makers. The DEX garnered a lot of attention in a short time span. Uniswap recently launched the third iteration, v3, of the platform which saw trading volume parallel to 80% of the v2 in just a week. The v3 provides custom liquidity options which will increase capital efficiency on the platform. The innovation also makes market making more complex for liquidity providers while also making it more competitive; hence, decreasing the incentives for liquidity providers to shift to v3. It is yet to be seen how the newer version of the platform plays out, but it can possibly play a role in decreased liquidity on the platform.

The young Ethereum co-founder has proposed to Uniswap to incorporate oracle functionality. Uniswap already provides oracle services but only for ERC-20 tokens. If the platform incorporates the technology, then there is a good chance of a price surge as decentralized oracles like Chainlink are in high demand.

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