Uniswap’s token could hit the $3.30 level after it generated a hype in the past day, leading the price of the token surging to highs of $8.50 as we reported in the latest altcoin price news.
It doesn’t appear that the hype will return anytime soon, as the token has since erased the vast majority of its gains and is showing heightened signs of weakness. BTC’s price reeled down to the lower $10,000 region today but it is now showing signs of strength as the sellers continue taking profits off the table. Etherum’s price crashed as well reaching the $330 region before finding buying pressure.
The market-wide weakness could hamper the UNI token growth and will eventually lead it lower. One analyst even set his sights on a move towards $3.30 noting that it could be a level when the price will drop before it is able to find significant support. At the time of writing, Uniswap’s token UNI is trading down by 14% at a current price of $4.24. This is around the price which it was trading over the past few days and weeks with buyers being unable to catalyze strong momentum.
UNI’s weakness stems from the combination of factors such as the fading hype after the intense $8.50 rejection as well as the technical weakness that was seen over the past few days. It’s also important to note that it is still trading up from the post-launch lows of $1.00 and now investors are getting concerned about the lack of benefits that the token holder receives but it is possible that the incentives like a fee distribution which will eventually be proposed and voted.
While speaking about the Uniswap token current technical outlook one trader explained that he will see the price drop towards $3.30 before it is able to find some strong support higher:
“If you liked UNI at $5.2, you gonna love it at $3.3.”
How altcoins such as Uniswap’s token trend in the upcoming days will depend largely on Bitcoin and Ethereum as we are going to see in the upcoming days and weeks. As recently reported, The coin was released retroactively to the historical users of the platform but even still, the governance token surged shortly after the launch, shaking of the strong selling pressure from those that dumped their fee allocations.
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