The Uniswap price dropped today even as the rest of cryptocurrencies and DeFi coins continued to do well. The UNI price is trading at $20.06, which is below the all-time high of $21.5865.
Uniswap declined even as the total value locked (TVL in the network continued to rise. The TVL rose by 5.73% to more than $3.53 billion. Other main DEXes like Curve Finance and SushiSwap also saw large inflows. In total, the TVL in the DeFi industry surged to more than $32.48 billion.
For starters, Uniswap is a DeFi project that is in the DExes category. The platform helps people exchange ERC20 tokens. Unlike other popular exchanges, the platform uses liquidity pools instead of order books. Members can also earn interest by supplying to this liquidity. Also, unlike other exchanges is decentralized, meaning that members make its key decisions.
The four-hour chart shows that the current decline of Uniswap price was not hard to predict. The price has formed an ascending channel pattern that is shown ib blue. This channel connects the highest levels on January 31st, February 1st, and 4th February. It also connects the lowest levels in these days. The channel seems like a bullish flag pattern.
Therefore, there is a possibility that the price will bounce back as bulls attempt to test the upper side at $22. If this happens, the price could bounce back to $25. However, a drop below $19.16 will invalidate this trend.
