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This Bearish Setup Could See UNI Drop To $4.78

12/07/2022
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Uniswap price action has been drab since Q3 of 2022 despite making waves since 2021. Investors have begun to wonder whether the Ethereum liquidity provider has finally run out of luck.  Generally, the year has not been looking positive for UNI, as it has fallen 65.6% year to date. Although there has been a slight increase in its value, experts are still optimistic that UNI has yet to run its course.

Uniswap price had been fighting for recovery since late November as the demand for its ecosystem grew. Accordingly, UNI token price rose to a high of $6.5 on December 2, approximately 35% above the lowest point reached in November following the FTX fiasco. Its market capitalization has also risen to almost $4.517 billion, which makes it #17 in the world’s list of cryptocurrencies by size on CoinMarketCap. At the time of writing, the UNI price is $5.96, down by 2.1% in the last 24 hours.

Growth Of Uniswap Ecosystem

Uniswap is revolutionizing the blockchain industry, first by decentralizing the exchange space when it made it easy for users to swap tokens amongst themselves without the need for a third party. Standing as the biggest decentralized exchange (DEX) by volume today, CoinMarketCap shows that the third version of Uniswap handled tokens worth over $536 million.

According to data from DefiLlama, the total value locked (TVL) on Uniswap is currently standing at $3.43 billion. All though this is 65% below the $9.89 peak reached on May 10, 2021, it is way higher than the highest value reached when the DEX was launched in 2020.

Total Value Locked On Uniswap 

Total Value Locked On Uniswap
Source: DefiLlama

Analysts speculate that DEXs will thrive in the future as they are relatively safer compared to their centralized exchanges (CEXs) counterparts. This has been proven severally after centralized platforms like FTX, Voyager Digital, Celsius, and BlockFi collapsed this year, as decentralized platforms continue to operate relatively well.

Uniswap has also moved to the NFT space, creating a platform for people to buy and sell non-fungible tokens (NFTs) in a decentralized fashion. Users can now trade NFTs across major marketplaces to find more listings and better prices.

Among the most popular NFT collections include CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, and Art Blocks. According to a November 30 tweet, Uniswap acts as an aggregator that surfaces listings from all major NFT marketplaces, including OpenSea, X2Y2, Sudoswap, LooksRare, and more. The post from Uniswap Labs, the company behind UNI read:

“As an aggregator, Uniswap surfaces listings from all major NFT marketplaces, including OpenSea, X2Y2, Sudoswap, LooksRare, and more. You’ll get the widest range of NFTs at the best prices!”

The announcement let out a $5 million airdrop to historical users of Genie, the NFT marketplace aggregator Uniswap acquired in June. Genie users would be airdropped $300 for completing at least one transaction or $1,000 for holding a Genie: Genesis NFT. “Eligible users can claim their airdrop in USDC for the next 12 months.”

Moreover, Uniswap is offering gas rebates for the first 22,000 new users who purchase an NFT, with the rebate capped at 0.01 ETH.

Despite Uniswap’s NFT platform still being in its budding stages, its volume has grown steadily right from inception, an outcome attributed to the benefits it has brought to the space. Among many, the most pronounced benefit is the aggregation of NFTs from across multiple chains, which means that it has more listings compared to the average platform.

Another benefit of the Uniswap NFT platform is that it is decentralized and there are indications of such platforms being better and safer for users.

Nevertheless, the challenge remains that concerns still exist about the future of NFTs as interest rates remain significantly high.

Uniswap Price Double Top Pattern Points to 20% losses

Uniswap price analysis shows that the bulls are returning to the scene after bears took control of the UNI price action earlier on Wednesday. The bulls were unable to take the UNI price across the $6.5 psychological level, resulting in an abrupt price dip. A bearish cross between the 100-period simple moving average (SMA) and the 200 SMA that occurred in late November is still in place, but now the bulls are trying to interrupt the downtrend. 

UNI/USD price appears to have formed a double-top pattern on the eight-hour chart after the recovery was halted at $6.50. This level is just above the 200-period Simple Moving Average (SMA) at $6.27 on the eight-hour chart shown below. A double-top is an exceptionally bearish chart pattern that often results in a trend reversal.

Note that this pattern forms when an asset tests a resistance level twice without breaking above it. The two tops are usually separated by a moderate low as shown on the Uniswap price chart.

A breakout from this technical pattern would be confirmed when the UNI price slides below the support line equal to the low at $4.78 (the technical pattern’s neckline), a 20% drop from the current price. If this happens, the Uniswap price could explore the psychological level at $4.5.

Therefore, a further decline in the UNI/USD pair can be expected as the short-term trending line is now descending because of the downward price movement.

UNI/USD 8-hour chart

Uniswap Price Chart
TradingView Chart: UNI/USD

Uniswap’s bearish narrative is reinforced by the Moving Average Convergence Divergence (MACD) indicator on the eight-hour chart that has just sent a sell signal. This occurred on Tuesday when the MACD line (blue) crossed below the signal line (orange) suggesting that the market had flipped in favor of the bears. The downtrend will gain more traction once the MACD crosses the neutral line into the negative region.

Note that an eight-hour candlestick above below the immediate support at $5.7, embraced by the 50 SMA is crucial to abating the anticipated downward breakout.

On the other hand, the Relative Strength Index (RSI) was pointing upward, indicating that the bulls are determined to sustain the current recovery. It is worth noting that the bearish thesis would be invalidated if the RSI crosses the midline and back into the positive zone. Closing the day above the 200 SMA at $6.27 will also boost the recovery efforts and trigger another rally, resulting in another ascent to the $6.5 range high. 

Well-Anticipated Innovations Likely To Explode In 2023

The year 2022 is almost closing and investors have started deliberating which cryptos they will invest in to open the next year with better promise. The native token of Uniswap, UNI, has had a glorious past, but as it appears to be on its last legs, other projects are set to explode, including RobotEra, and Calvaria. These coins are well-anticipated innovations, and they have significant potential to explode in 2023.

RobotEra (TARO)

RobotEra is another new crypto game to venture into, coming into the space to make cryptocurrency gaming a popular concept. In RobotEra, every player is incarnated as a robot with the freedom to create whatever they want. All players have the freedom to mine the land, recover resources, and use them in building theaters, robot companions, and whatever else their minds fathom. The land in the RobotEra metaverse is an NFT that players can trade in the marketplace.

The native currency in the RobotEra game is TARO, which players need because it powers literally every feature in this metaverse. The presale of the TARO token will soon be moving into the second stage (presale stage 2).

The team behind RobotEra has so far raised $405,000 in the ongoing presale. Now is the ideal time to join in, as prices will go up when the project finally goes live.

Calvaria

Calvaria is a cryptocurrency platform dedicated to increasing the availability of crypto more than it already is. To do this, the project leverages its battle card game, the revolutionary Duels of Eternity, which will play an ambassadorial role between the real world and the crypto world. 

Calvaria’s Duels of Eternity will be available in a play-to-earn (P2E) version that will feature blockchain elements. The battle card game will also be available on app stores for people that would otherwise want to avoid blockchain games.

The free-to-play version of the Duels of Eternity will integrate education missions intended to teach the player about the blockchain while incentivizing users to download the play-to-earn version.

The native token of the Calvaria blockchain platform is the RIA, which is already in the fourth stage (FINAL) of the presale. So far, the presale has raised $2.25 million and is selling out first with only 28% token left in the 5th and final stage of the presale. Do not miss out on this opportunity to acquire an RIA token while it is still cheap because of the price is set to increase once it is listed on exchanges.

You can buy $RIA with ETH or stablecoins before the price increases. Tokens will be available for claim at launch.

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Source: https://insidebitcoins.com/news/uniswap-price-prediction-this-bearish-setup-could-see-uni-drop-to-4-78