Uniswap Price Prediction: Uni faces rejection at its 50 Simple Moving Average as other red flags appear

  • Uniswap price prediction highlights UNI’s price movement that threatens to undo its recent 115 percent bull run.
  • Since May 23 price decline, Uniswap’s Momentum Reversal Indicator (MRI) has been flashing sell signals.
  • The drop in daily active addresses validates the projected bearish outlook.
  • Transactional data reveal Uniswap has a colossal group of underwater investors who are pushing Uniswap’s price downwards.

The Uniswap price movement has been registering an impressive run-up since the May 23 price dip. Despite the tremendous price recovery, Uniswap risks wiping all these gains due to critical technical indicators flashing sell signals.

Uniswap Price Prediction: General price overview

Uniswap’s price movement has predominantly been recording downward price trends since May 3, when it hit a new ATH at $45. The milestone was short-lived as a quick price dip followed, robbing the crypto coin of more than 70 percent of its gains. On May 23, Uniswap registered a record low of about $13 before rebounding. The price rebound formed a solid bullish candlestick on the cryptos daily chart. Since then, Uniswap price action has moved to reclaim the 0.618 Fibonacci Retracement Support level around the $17.4 price region. As a result of the plunge, Uniswap’s immediate resistance levels currently range between the 0.5 and 0.618 Fibonacci Retracement Levels at $29 and $32.8, respectively.

Away from this, the last 18-hours have witnessed Uniswap rallying by about 30 percent, pushing the crypto coin towards the $29 resistance level. Although the crypto coin failed to produce a higher high above this region, Uniswap managed to register an ultra-day high of $27.86. It could not bypass this region due to insufficient buying pressure and the resistance barrier at the 50 12-hour Simple Moving Average (SMA) at $29.

Uniswap’s Momentum Reversal Indicator (MRI) has also signaled a reversal indicator in the form of a red candlestick on the 12-hour chart during today’s trading session. This suggests Uniswap’s bullish run has come to an end. Additionally, the current circumstance projects a 1-to-4 candlestick price correction, validating the bearish narrative. Furthermore, Uniswap’s 50 6-hour Simple Moving Average appears to be moving closer to the 100 6-hour SMA with the indication of moving under it. If such an action happens, it could see Uniswap depreciate by about 20 percent to settle at around $22.

Uniswap price movement in the past 24 hours

Uniswap Price Prediction: Uni faces rejection at its 50 Simple Moving Average as other red flags appear 1
Source: TradingView

According to Uniswap’s IntoTheBlocks In/Out of the Money Around Price (IOMAP) model, there are a significant number of underwater UNI holders ahead. At present, about 10,400 addresses who bought roughly 240 million UNI tokens at an average price of $28.2 are out of the money. Although these investors want to see Uniswap move past the $28 resistance barrier, their anticipation dampens any bullish narrative, adding more selling pressure on the coin.

Uniswap 4-hour chart

Uniswap Price Prediction: Uni faces rejection at its 50 Simple Moving Average as other red flags appear 2
Source: TradingView

At present, Uniswap is experiencing a decline in new active addresses joining the cryptocurrency. The number has dropped from a high of 2,760 on April 26 to a low of 1,340 today. The 51 percent plunge suggests investors are either booking profits or relocating their assets. Therefore, this yardstick also depicts a bearish narrative, indicating Uniswap is likely to record further price declines in the near term.

Conclusion

Although things do not look great for the DeFi token, a decisive close above the $35.5 price region would nullify all the bearish projections. In such an event, the DeFi crypto coin could see a 22 percent price surge towards $42.4. The $25.5 price region happens to be the juxtaposition of the 50 and 100 6-hour Moving Averages.

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