Uniswap is down 6% in the past week.
UNI has lost an important pillar of support.
The cryptocurrency is bearish, but there are bullish signs.
Uniswap (UNI/USD) has been under pressure recently. The cryptocurrency was among those least shaken by the collapse of the FTX. The strengths were supported by the exodus of traders to decentralized exchanges. Days after the collapse, Uniswap became the second largest exchange for Ethereum trading volumes after Binance.
However, the Uniswap token is now under pressure. A 6% loss over the past week took the cryptocurrency to $4.9, losing a key $6.0 support zone. It is clear that the bears have the upper hand after the cryptocurrency broke below the key level. The cryptocurrency recovered slightly by 1.50% on Thursday.
But there are positive developments that could increase the usability of Uniswap’s token. A report from Messari on November 21 indicated that Uniswap was exploring a new product line. The report indicated that Uniswap would spend $165 million on the venture. That will be the introduction of swaps through acquisitions of Sudoswap and Genie XYZ. The addition of swaps is expected to improve Uniswap’s liquidity and increase the utility of the native token.
Uniswap Analysis and Technical Outlook
UNI/USD chart by TradingView
On the daily chart, UNI is trading with diminishing momentum. The MACD indicator is bearish as the cryptocurrency dipped below the $5.6 level.
The RSI value is below the midpoint. The cryptocurrency has yet to reach oversold levels, but it is under the control of bears.
What now for UNI?
The bias is bearish ahead UNI Prize currently. However, the cryptocurrency is choppy rather than extremely bearish. If bear momentum picks up, the next level to watch is $4.1.
On the other hand, the slight recovery under the support-turned-resistance could unleash a bullish push for UNI. A sustained upside will allow buyers to take the price above the $5.6 zone.
Where to buy UNI
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