Uniswap (UNI) Price Drops to Crucial Support Level as Unichain Layer-2 Network Gains Momentum

Uniswap's token has dropped to a crucial support level even as Unichain, its layer-2 network, continued its strong momentum.

Uniswap (UNI) price dropped to a crucial support level on Saturday as its layer-2 network continued its strong momentum.

Uniswap (UNI) token has dropped to a crucial support level even as Unichain, its layer-2 network, continued its strong momentum.

Uniswap price dropped to $5.26 on Saturday, down by over 72% from its highest point this year. At this level, it had dropped to the support at $5.25, which coincided with the trendline that connected the lowest levels since 2022.

Moreover, the coin had formed a giant megaphone pattern, a popular bullish sign. This pattern had two ascending and diverging trendlines.

Therefore, the coin will likely have a strong bullish breakout in the coming months as bulls target last year’s high of $19.32, which is 275% above the current level. A drop below the lower side of the megaphone will invalidate the bullish view and point to a drop to $3.4, its lowest level in 2022.

Uniswap price chart

As the cryptocurrency market continues to be affected by rising tensions on trade, the crypto tokens have dropped.

The world’s largest decentralized exchange (DEX), Uniswap (UNI), has seen its token drop sharply this year. Notably, it lost market share to other popular DEXs like Raydium, Orca, and PancakeSwap.

According to DeFi Llama, Uniswap has transacted over $48 billion in volume in the last 30 days. PancakeSwap processed $33.6 billion, while Raydium and Orca handled $11.3 billion and $13 billion, respectively.

On the positive side, Unichain, its recently-launched layer-2 network, has continued to gain market share. Protocols in the network processed over $329 million in the last seven days, bringing its 30-day volume to $301 million.

Unichain now has a higher 30-day volume than other larger layer-1 and layer-2 networks, including Core, Stacks, Internet Computer, Scroll, Algorand, and Injective.

Uniswap launched Unichain to be a better chain for DEXs. It has cheaper execution, cross-chain liquidity, and instant transactions.

Meanwhile, Uniswap’s fees have remained stable this year. According to TokenTerminal, the network has handled over $301 million in fees this year, making it higher than Ethereum’s (ETH) $234 million and AAVE’s (AAVE) $206 million.