The Uniswap price recovery rally experienced earlier this week has faded in line with the performance of other coins. The UNI token is trading at $9.21, which is about 15% below the highest point this year. It has crashed by over 80% below the highest level in 2021. Its market cap has dropped to about $4 billion, making it the 33rd biggest coin in the world.
Uniswap is a blockchain project that has changed the industry in the past few years. It is a popular platform that helps people to buy and sell cryptocurrencies without going through centralized exchanges like Coinbase and Binance. Today, it is used by millions of traders from around the world.
While Uniswap is a good project, it is facing significant challenges as the number of DEXes increases. For example, while Uniswap was the first platform in the industry, its dominance has been fading over the years. Today, there are decentralized exchanges built on multiple chains like Solana and Avalanche that are seeing strong demand.
According to DeFi Llama, Uniswap has a total value locked of over $7.53 billion, which is lower than its all-time high of over $10 billion. The coin’s price is dropping because of the overall performance of other cryptocurrencies. For example, Bitcoin has dropped in the past three straight days while the total market cap of all tokens has dropped to below $2 trillion.
This decline also mirrors the performance of other assets. Key indices like the Dow Jones and Nasdaq 100 index have all dropped sharply in the past few days as the crisis in Ukraine continues. Indeed, Uniswap has set tools that people can use to donate to the country.
On the daily chart, we see that the UNI price has been in a strong bearish trend in the past few days. A closer look at the chart, we see that the coin has formed a widening channel that is shown in blue. The downward trend is also being supported by the 25-day and 50-day moving averages.
Therefore, the Uniswap price will likely continue the bearish trend as long as it is below the two moving averages. If this happens, the next key level to watch will be at $7. This view will be invalidated if the coin moves above $10.
This post was last modified on %s = human-readable time difference 18:22