Summary:
- Uniswap (UNI) is hovering around $5, currently down by over 3%.
- Daily trading volume has declined by over 26%, now at $127 million.
- On-chain activity shows 19.21 million UNI moved to exchanges in the past week.
- UNI faces strong bearish pressure, but slight bullish indicators remain.
- Key support at $5.22; resistance at $5.39 could determine next trend direction.
UNI Price Action Signals Uncertainty
Uniswap (UNI), one of the leading decentralized exchange tokens, is currently at a critical juncture. The asset has slipped by over 3% in recent trading sessions and is now priced at $5.34. This decline follows an intraday high of $5.54, indicating that the bears are still dictating the market’s direction.
Adding to the concern is a significant drop in trading volume, which has plummeted by 26.71%, bringing it down to $127 million. This lower activity highlights weakening market participation, further compounding the downward pressure on the token.
On-Chain Activity Raises Concerns
A major factor unsettling investors is the recent movement of large volumes of UNI to centralized exchanges. A dormant wallet, inactive for more than 4.5 years, suddenly transferred 9 million UNI—worth approximately $47.5 million—to Coinbase Prime. In total, four wallets connected to the project have moved 19.21 million UNI over the last six days.
Such large transactions are often interpreted as bearish signals, potentially indicating sell-offs, especially when they coincide with declining price trends and volume.
Bearish Technical Indicators Dominate
From a technical perspective, the situation is leaning heavily bearish. The Moving Average Convergence Divergence (MACD) indicator shows both the MACD line and signal line below the zero mark, confirming a strong downtrend. Meanwhile, the Bull Bear Power (BBP) indicator stands at -0.2130, further underlining bearish dominance.
The daily Relative Strength Index (RSI) is currently at 36.29, which suggests UNI is nearing oversold territory but hasn’t quite hit it yet. This reflects ongoing bearish momentum, but also hints at the possibility of a reversal if market sentiment shifts.
Is There Hope for the Bulls?
Despite the prevailing bearish sentiment, there are glimmers of potential upside. The Chaikin Money Flow (CMF) indicator shows a positive reading of 0.09, suggesting minor capital inflows into UNI. If bulls can harness this momentum and reclaim control, the token might challenge the immediate resistance at $5.39.
Should UNI manage to sustain an upward push past that resistance level, the next key target would be the $6 mark. However, if bearish pressure continues, the token is at risk of testing critical support around $5.22. A breakdown below this could lead to further declines toward previous lows.
Conclusion
Uniswap is currently teetering between recovery and further decline. While on-chain activity and technical indicators signal strong bearish control, minor bullish signs suggest a potential comeback. Whether bulls can reclaim ground or the downtrend deepens will depend on how UNI performs around its key support and resistance zones in the coming days.