Uniswap (UNI) has entered bearish territory as its price plummeted below the critical $6.7 support level, triggering concerns across the DeFi market. This technical breakdown, accompanied by increasing selling pressure, suggests the leading DEX token could face additional downside in the coming days.
Technical Analysis Shows Mounting Bearish Pressure
The recent price action reveals several concerning signals for UNI holders:
- Break below the crucial $6.7 support level
- Price trading under the 100-day Simple Moving Average (SMA)
- Bearish MACD crossover confirming downward momentum
- Declining trading volume indicating lack of buyer interest
Similar to the broader DeFi market weakness highlighted in recent analysis of DeFi TVL trends, Uniswap’s technical deterioration suggests potential further losses ahead.
Key Support Levels to Watch
With the breakdown below $6.7, traders should monitor these critical support zones:
| Support Level | Technical Significance |
|---|---|
| $5.50 | Previous consolidation zone |
| $4.80 | Major historical support |
Potential Recovery Scenarios
For bulls to regain control, UNI needs to:
- Reclaim $6.7 with strong buying volume
- Break above the 100-day SMA
- Show increased trading activity supporting upward momentum
Frequently Asked Questions
What caused Uniswap’s recent price drop?
The decline appears primarily technical, triggered by the breakdown below key support levels and exacerbated by declining trading volume.
Can Uniswap recover from this downturn?
Recovery is possible if buyers step in and push the price back above $6.7, but significant volume will be needed to reverse the current bearish trend.
What are the next price targets for UNI?
If selling pressure continues, UNI could test support at $5.50, with $4.80 serving as the next major support level.