- On-chain metrics revealed that exchanges have seen UNI inflows worth $10.20 million
- UNI, at press time, was still trading above the 200 EMA
Amid the wider market’s general volatility, UNI, the native token of Uniswap, the world’s leading decentralized exchange, may be poised for a significant price decline. This, due to the fact that its price action formed bearish price patterns on the daily charts.
Uniswap (UNI) technical analysis and price action
According to AMBCrypto’s analysis, UNI recently failed to maintain its crucial support level of $12.50 – A price level it had held for the last three months. During this period, the token retested this level more than four times, each time registering some upward momentum.
Source: TradingView
However, following the breakdown of this support level, sentiment for UNI fell. This may soon fuel a significant price drop on the charts.
Based on the altcoin’s recent price action and historical momentum, there may be a strong possibility that UNI could decline by 20% to hit the psychological level of $9.50.
Worth noting, however, that despite its recent bearishness, UNI was trading above its 200 Exponential Moving Average (EMA) on the daily timeframe. To put it simply, the altcoin has been on an uptrend of sorts, notwithstanding its price performance.
$10.20 million in UNI inflows
Following the most recent breakdown and the bearish chart’s pattern, investors and long-term holders were seen dumping their holdings onto exchanges, as reported by the on-chain analytics firm Coinglass. In fact, Spot inflow/outflow data revealed that exchanges recorded UNI inflows worth $10.20 million in the last 24 hours alone.
This hinted at a potential dump, one which could fuel selling pressure and lead to further price drops on the charts.
Uniswap’s upcoming upgrade
Oddly enough, this bearish outlook for UNI comes at a time when Uniswap’s much-anticipated v4 upgrade is scheduled for the upcoming week. On 22 January, Uniswap Labs announced on X (formerly Twitter) that v4 deployments would begin rolling out this week, allowing builders to test hooks and integrations on-chain.
Source: X (Formerly Twitter)
The project also revealed that all contracts are expected to be deployed for a full launch next week. This upgrade is anticipated to enhance Uniswap’s core infrastructure and liquidity provision.
