- Uniswap price is down 8% since the start of December and 87% since all-time highs.
- UNI could fall another 50% into a critical level if the crypto market heads further south.
- A breach above $6.23 is needed to consider aiming for bullish target zones.
Uniswap price continues to display congestive market behavior. Following eight months of rangebound trading, the UNI token will likely resolve the confusion with an explosive move.
Uniswap price could endure more pain
Uniswap price has been auctioning within a descending parallel channel since the spring of 2021. The declining trend has brought the Ethereum-based swap token’s market value down by 87%. Still, the token sits firmly 1,600% above its October 21′ launch price at $0.28. While many in the space are hoping for a bullish surge to resolve the endless downtrend, the technicals suggest UNI still has much more room to fall.
Uniswap price currently auctions at $5.19. A Fibonacci retracement tool surrounding the $0.28 low and the 2021 all-time high at $45 shows the current downtrend as just a 50% retracement. Investors should keep their eyes on the 50% Fib level at $4.64, as a piercing of the level would expand UNI’s trading range to the downside.
The 61.8% Fib level, often referred to as the “Golden Pocket zone” for its high affinity of being breached following a bull run, lies at $2.43. UNI has yet to retest the magnetic zone following the 2021 bull run. A tag of the aforementioned level would result in a 50% decline from Uniswap’s current price.
The 50-day, 100-day and 200-day simple moving averages (SMA) compound the bearish narrative as all three indicators are compressing above the current price action. Classical analysis traders would suggest UNI is in a confirmed downtrend based on the indicator’s failure to provide support.
UNI/USDT 1-Month Chart
A hurdle above the 50-day SMA would create the ideal scenario for bulls to begin aiming for higher targets. The 50-day SMA rejected UNI’s attempt to rally higher on December 13 and currently resides at 15% above the current price of $6.23. Reconquering the $6.23 zone would allow for a retracement into the 100-day SMA at $7.80. UNI would rise by 48% if the bullish scenario played out.
This video shows how Bitcoin price moves could affect UNI price