Uniswap’s price has declined in recent months, with a newly formed death cross indicating possible further losses.
The price of Uniswap coin was $10 on Tuesday, which is more than fifty percent lower than its all-time high in November. This collapse occurred at the same time that Bitcoin (BTC) was experiencing a halt in its rally and a bear market for other cryptocurrencies was gaining momentum.
One of the most prominent players in the decentralized exchange industry, Uniswap, has been experiencing a decline in its market share in recent years. In terms of trading volume, Uniswap has reportedly handled $100 billion, which is now behind PancakeSwap’s $109 billion.
Furthermore, Uniswap has seen its market share decrease as a result of Raydium, which is the largest DEX on Solana. Meanwhile, the recently established Unichain’s mainnet is starting slowly.
With the use of data from DeFi Llama, Unichain has been able to secure a total value of $8.62 million and attract 12 DeFi networks. Stargate, Uniswap, Venus, and DyorSwap are the leading decentralized applications (dApps) in the ecosystem.
Due to the fact that it is compatible with several chains and has reduced transaction costs, Uniswap intends to establish Unichain as the principal network for user transactions.
Uniswap continues to be the most lucrative operator in the DEX market, despite the hurdles and obstacles that it faces. This year, Uniswap has reportedly collected a total of $186 million in fees, which is a significant amount higher than the $71 million that PancakeSwap has generated.
The decrease in the balances of UNI tokens on centralized exchanges is another indication that great things are happening. Since the beginning of this month, the total quantity of UNI tokens owned on exchanges has decreased from 67 million to 61 million.
Uniswap price has formed a death cross pattern
There is a decrease in exchange balances, which indicates that there is less pressure to sell and that investor confidence has grown. UNI reached its highest point of $19.44 late in the previous year, according to the daily chart, before falling to $10.
This is a crucial negative continuation signal in technical analysis, and the token has now created a death cross, which is a situation in which the 50-day and 200-day Weighted Moving Averages have flipped. Furthermore, Uniswap has formed a bearish flag pattern, typified by a rapid decline followed by consolidation.
To add insult to injury, the token has dropped below the 61.8% Fibonacci Retracement level, which is a crucial zone where rebounds frequently take place.
In light of these bearish signals, the next important support level to keep an eye on is $7, which is much lower than it has been this month. The negative view, on the other hand, would be rendered null and void in the event that UNI rose above the 200-day moving average at $11.20.
