UNI Sees Mixed Price Action With Chances To Drop To $2.50: Analysis

UNI sees mixed price action as of late as the bulls and bears reached an impasse following the notable upswing that was seen earlier this week. In our latest crypto news, we are taking a closer look at the price analysis.

The Token’s price action did little to provide the investors with insights into where the trend will head next as the promising future of the decentralized exchange hasn’t reflected in the price trend yet. There’s a growing possibility that it will remain trendless until a catalyst like releasing Uniswap V3 or fee distributions to holders will create an incentive to purchase and to hold the token, as UNI sees mixed price actions.

Looking at the price from a technical perspective, the tokens’ outlook is grave at the moment as investors are expecting to see more drops back to the recent lows before it can form double bottoms and shoot higher. These lows are now sitting around $2.50 which could mean that it is in for a plunge before going higher. The entire crypto market is now expressing strength due to Bitcoin’s push past $11,000 which came on the heels of the news about Square purchasing $50 million worth of BTC.

The Defi sector performed well because of this market-wide strength but certain tokens such as UNI are still having a hard time. Following UNI’s hype around the launch, the cryptocurrency’s price increased all the way up to a high of $8.50 before losing momentum and crashing lower. A few days ago, the cryptocurrency faced a capitulatory downturn which sent it all the way down to $2.50 which marked a retrace of the gains that were incurred at the time after the launch. It rebounded since to past $3.00. analysts believe that more downsides will be imminent for the governance token.

While sharing his thoughts on where it will trend next, one analyst stated that a breakdown below a key trendline that it is now tapping, will lead to $2.50 as he noted that a visit to these lows could precede the upcoming uptrend:

 “UNI: If it breaks down – where I’m looking to re-enter. Just a possible scenario.”

Uniswap’s UNI token could continue tracking the price action that is seen in the Defi sector which follows Bitcoin’s near-term trend.