- On-chain indicators saw $12 million in outflows from exchanges.
- At press time, Uni was still trading above the 200 EMA.
Amid the general volatility of the broader market, Uni, the native token of Uniswap, the world’s leading decentralized exchange, could be primed for a significant price drop. This is because the price action has formed a bearish price pattern on the daily chart.
Uniswap (UNI) technical analysis and price action
According to Ambcrypto’s analysis, UNI recently failed to hold the critical support level of $12.50. This is the price level it has been at for the past three months. During this period, the token has retested this level more than four times, each time registering upward momentum.
Source: TradingView
However, after this level of support was analyzed, sentiment towards Uni dropped. This could soon cause 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 20% to hit the psychological $9.50 level.
However, despite recent weakness, Uni was trading above the 200 exponential moving average (EMA) on the daily time frame. Simply put, altcoins have had some sort of bull run despite their price performance.
$1,20 million in UNI inflows
Following the most recent pattern of breakdowns and bearish charts, investors and long-term holders have been seen dumping their holdings on exchanges, as reported by on-chain analytics firm Coinglass. In fact, spot inflow/outflow data shows that the exchange recorded $12 million UNI inflows in the last 24 hours.
This could be hinted at as a potential dump, breaking the pressure and causing further price decline on the chart.
Uniswap’s Upcoming Upgrades
Oddly enough, this bearish outlook for Uni comes just as Uniswap’s much-anticipated V4 upgrade is scheduled for the coming week. On January 22nd, Uniswap Labs announced that the V4 distribution on X (formerly Twitter) would be released this week, allowing builders to test hooks and integrations.
Source: X (formerly Twitter)
The project also expects all contracts to be in place for full launch next week. This upgrade is expected to enhance UNISWAP’s core infrastructure and liquidity provision.