Uniswap price is risking further dip after breaching $3.0 support. Uniswap governance token, UNI, is among the biggest hits in the cryptocurrency industry after hitting a total market cap of over $600 million on day one of trading. Sadly, the DeFi token was unable to sustain its initial momentum, depreciating significantly. Its total market capitalization at the time of writing is approximately $500 million.
The UNI/USD pair started the day trading near $3.1105 after closing the previous day trading at $3.1123. Uniswap price currently stands at $2.9780 with a 24-hour trading volume of $509,879,650. Over the last 24 hours, the UNI/USD pair has depreciated by 16.4 percent. So far, the Uniswap price has ranged in between $2.9150 — $3.1189.
Uniswap’s negative momentum is growing stronger as the above 12-hour chart indicates. The UNI/USD pair nosedived to hit a brief low of $2.47 before rebounding. Fortunately, the bounce-back was pretty solid, and Uniswap surged by more than 45 percent to hit $.65 on October 10. Notably, for the first time, the MACD indicator signalled bullishness.
On October 12, the UNI/USD pair launched an attempt against the $3.66 support level and unfortunately the resistance was immense. The governance token got rejected and slumped by over 15 percent to the current price of $2.9780. The MACD indicator has started to turn bearish signalling a price drop. Moreover, the trading volume is increasing while UNI value is dropping, which is a bearish signal.
Uniswap price action is currently trading in a hostile area, and the bears are still pushing. As such, the selling pressure was not entirely quelled, and the governance token is hunting for firm support. The relative strength index has signalled a negative deviation indicating that the bearish rally might extend.
The UNI/USD pair has successfully managed to breach the support zone near $3.0, and the bearish market will likely extend towards the fundamental support zone near $2.50 and $2.60. On the other hand, the first resistance point is near the 100 and 50 SMA and the critical price resistance at $3.60.
The latest bounce back by the Uniswap price action came as a great comfort to investors after a very sharp price decline. If the breakdown continues, UNI could see some significant losses. Furthermore, the number of new addresses joining the platform is diminishing, which is worrying. On September 26, the number of new Uniswap addresses per day was over 4,300, but they have significantly declined to a bottom of 1,400 and are still dropping. This evidently signals that investors are detached with UNI at the moment. The UNI/USD pair could be destined for a drop towards $2.46 if the current bear market prevails.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on October 15, 2020 12:27 pm
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