The Uniswap price is rolling over on Tuesday and may soon breach Friday’s low, setting up a return to the July trough.
Uniswap (UNI) is trading at $19.80 (-2.20%), down over 20% in November and almost 60% below the all-time high. The decentralized exchange’s (DEX) market cap has slumped to $12.5 billion, ranking it the 18th most-valuable cryptocurrency ahead of Polygon.
Unlike many cryptos that made new highs recently, Uniswap has been languishing in a broad sideways channel since the crypto-crash in May. Even China’s cryptocurrency ban in September was unable to spark a sustained rally. As a result, investors have shunned the UNI token in favour of fast-moving layer-1 and Metaverse coins. Furthermore, recent research shows that around half of Uniswaps liquidity providers are losing money, which could drive capital and liquidity from the platform.
The daily chart paints a depressing picture for the Uniswap price. At the time of writing, UNI is probing lower towards the support of the September low at $17.60. And in my opinion, a close below $17.60 could result in an extension into the $13.00-$16.50 range.
But even if Uniswap turns higher from the current level, the 200-Day Moving Average at $23.76 is a significant obstacle. On that basis, as long as the price remains below $23.76, I expect the downside to prevail, targeting $13.00.
However, successful clearance of the 200-DMA would suggest a bullish reversal, invalidating the bearish view.
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This post was last modified on Nov 30, 2021, 07:03 GMT 07:03