The Uniswap price declined slightly on Friday as the strong recovery rally seen during the week faded. UNI is trading at $17.50, which is about 25% above the lowest level this week. The Uniswap tokens are worth more than $10 billion.
What happened. Uniswap is one of the leading Decentralized exchanges in the world with more than $5.31 billion of total value locked (TVL). Curve Finance is the only bigger DEX. Uniswap works with more than 70 liquidity providers and has more than 57 million traders. Its all-time volume in the network is worth more than $298 billion, which is a strong performance. It has also been integrated with the likes of Coinbase and Binance.
The Uniswap token price has bounced back after it declined to $14 early this week during the crypto sell-off. This rebound happened as the amount of activity in the network rose. For example, data shows that the total value locked rose from more than $4.9 billion on Monday to more than $5.3 billion.
Still, this is substantially lower than its all-time high of more than $8 billion. This performance is mostly because the crypto sell-off has led to low demand for cryptocurrencies. The recent recovery of the digital coins has led to more demand for Uniswap tokens.
The daily chart shows that things are not looking good for the UNI price. We see that the coin has formed a descending triangle pattern that is shown in black. In technical analysis, this triangle is usually a bearish sign. The downward trend is also being supported by the 25-day and 50-day moving averages.
A closer look also shows that the coin has formed a head and shoulders pattern. Therefore, the coin will likely break out lower in the next few days. If this happens, the next key level to watch will be the support at $10. On the flip side, a move above $18.50 will invalidate this prediction.
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