Uniswap (UNI) Slips Below $6.70 Support, Raising Concerns About an Extended Downturn

Uniswap (UNI) has slipped below the crucial $6.7 support level, raising concerns about a potential extended downturn. This breakdown comes amid increasing

Uniswap (UNI) slipped below the crucial $6.7 support level, raising concerns about an extended downturn. This breakdown comes amid increasing selling pressure, signaling that the bulls may be losing their grip on the market.

With volatility rising and market uncertainty growing, the next few trading sessions will be crucial in determining whether UNI can bounce back or if a prolonged downtrend is on the horizon. Will the bulls reclaim lost ground, or is UNI heading for even lower levels?

Uniswap Price Action Shows Clear Signs Of Weakness

Chart by TradingView

UNI's price action is showing clear signs of weakness as the token struggles to regain momentum after breaking below the $6.7 support level. This downturn has intensified bearish sentiment, with sellers dominating the market and pushing UNI toward lower support levels.

The asset has also dropped below its 100-day Simple Moving Average (SMA), a key long-term support level. This breakdown suggests a potential shift toward a broader downtrend, especially if UNI fails to reclaim this level quickly.

A prolonged stay below the 100-day SMA could reinforce seller dominance, increasing the risk of further declines. Meanwhile, the MACD has flipped bearish, with the signal line crossing below the MACD line, a classic indication that sellers are gaining strength.

Additionally, Uniswap trading volume has decreased, suggesting a lack of strong bullish participation to counteract the selloff. For Uniswap to regain strength, buyers must push the price back above $6.7 with strong volume, invalidating the breakdown.

Uniswap Stays On Course For More Gains - $12.3 Resistance In Sight

Until then, the risk of more downside toward $5.5 and $4.8 remains high. After a brief rally that stalled at $8.7, Uniswap (UNI) is staying on course for more gains as long as it holds the Fib 61.8 level.

Uniswap Stays On Course For More Gains - $12.3 Resistance In Sight

A recent analysis by crypto technical analyst Ben Armstrong, known as "Bastonconomic" on YouTube, highlights the key support levels and potential resistance levels to watch in the coming weeks of trading.

According to the analysis, Uniswap faces immediate support at the Fib 61.8 level, which is crucial for the bulls to defend to avoid further weakness toward the Fib 5 level at $4.8 and the Fib 38.2 level at $3.8.

"We've got Fib 61.8, which is going to be a level of support. If we break Fib 61.8, then we're going to go to Fib 5, which is around $4.8, and then Fib 38.2, which is around $3.8."

If the bulls can defend this support, then the next resistance level to watch is at $8.7, where the price has already faced rejection in recent trading. A breakout and closure above this level would open the door for a move to the 1.618 Fib level at $10.3 and 1.272 Fib level at $12.3.

"If we can break out of here and stay above $8.7, then we're going to go to Fib 1.618, which is about $10.3, and then Fib 1.272, which is about $12.3."

Uniswap is showing signs of a potential recovery as the token attempts to stabilize above the Fib 61.8 level and break out of the descending channel, which could be a sign that the selling pressure is easing.

However, if the bears manage to break the Fib 61.8 support level, it could open the door for a deeper correction.

"It looks like it's going to be setting up for one final push to get us out of this channel and then continue the uptrend. But if we break Fib 61.8, then we could be setting up for a deeper correction."

Uniswap is a decentralized exchange that allows users to trade cryptocurrencies directly with each other, without the need for a central intermediary. The platform's native token, UNI, is used to vote on proposals that affect the exchange and to earn rewards for providing liquidity to the platform.

Uniswap has become one of the largest and most popular decentralized exchanges, and its token has been a strong performer in recent months. However, the token is now facing a critical test of support, which could determine whether the bullish trend will continue or if a deeper correction is in store.