Has Uniswap (UNI/USD) become bearish after this price action?
-
Uniswap has declined by 6% in the past week.
-
UNI has lost a key support.
-
The cryptocurrency is bearish, but there are bullish signs.
Uniswap (UNI/USD) has been under pressure lately. The cryptocurrency was among those that were least shaken by the FTX collapse. The strengths were supported by traders’ exodus to decentralised exchanges. Days after the collapse, Uniswap became the second largest exchange on Ethereum trading volumes after Binance.
However, the Uniswap token is now under pressure. A loss of 6% in the past week took the cryptocurrency to $4.9, losing an important $6.0 support zone. Clearly, the bears have the upper hand after the cryptocurrency broke below the key level. The cryptocurrency recovered slightly by 1.50% on Thursday.
But there are positive developments that could increase the utility of Uniswap’s token. A Messari report on November 21 indicated that Uniswap was exploring a new product line. The report indicated that Uniswap would spend $165 million in the endeavour. That will see the introduction of swaps through Sudoswap and Genie XYZ acquisitions. The addition of swaps is expected to enhance Uniswap’s liquidity and boost the utility of the native token.
Uniswap analysis and technical outlook
On the daily chart, UNI is trading with weakening momentum. The MACD indicator is bearish as the cryptocurrency slipped below the $5.6 level.
The RSI reading is below the midpoint. The cryptocurrency is yet to enter the oversold level but is under the control of bears.
What next for UNI?
The bias is bearish for UNI price at the moment. However, the cryptocurrency is rather choppy rather than extremely bearish. If the bear momentum mounts, the next level to watch will be $4.1.
On the flip side, the slight recovery below the support-turned-resistance could ignite a bullish push for UNI. A sustained upside will allow buyers to take the price above the $5.6 zone.
Where to buy UNI
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
eToro
eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.
It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.
eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.
