UNI Shows signs of weakness as the analysts target a new level of $4.80 due to the immense volatility over the past few days. There was some strong buying pressure following the launch and it pushed the token towards $8.50 before witnessing a huge inflow of selling pressure as we reported in the recent altcoin news.
The selling pressure caused the price of the token to drop below $5.00 although it is still trading up from the recent lows of $1.00 which were set shortly after the introduction on the market. Analysts noted that the combination of increased selling pressure and funding rates for the UNI perpetual swaps shows a downside could be imminent in the near-term. One analyst noted that the support in the mid $4.00 range is important but it could not be enough to stop if from sliding lower. While speaking about whether Uniswap’s token will trend next, he mentioned that this movement depends on Bitcoin and Ethereum.
These two assets have been seeing increased weakness as well over the past few days indicating that the prices will drop lower in the near-term. UNI shows signs of weakness as it is trading down over 20% with a current price of $4.95. the cryptocurrency was struggling to gain momentum from the recent rally of $8.50 earlier this week. Despite the current level settlement below the weekly highs, it’s important to note that it is trading up from the post-launch lows of $1.00 which came directly after the token was listed on the exchange.
The decline occurred because of the sudden influx of 400 UNI sell orders seen after its listing during which the recipients of the token airdrop offloaded their tokens. while speaking about the near-term outlook of the cryptocurrency, one analyst said that Uniswap’s token is entering a massive support region within the selling pressure that is placed on Bitcoin and Ethereum which could eventually force UNI lower:
“UNI update: Had some bids fill in the gray box, but I’m simply exiting them here in small profits. There’s a potential (not saying it will happen), but there’s a potential for ETH and BTC to continue downwards, and I doubt UNI will hold if so.”
Altcoins like UNI are expressing weaknesses across the board which marks a trend that will persist until ETH and BTC manage to find stability.
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