Uniswap (UNI) Slides 6% as Technical Indicators Flash Bearish Signals

• Uniswap (UNI) price dropped 6.39% to $6.88, with market cap falling to $4.32B.
• Trading volume surged 15.74% to $605.71M, indicating increased activity.

Uniswap (UNI) faced a sharp retreat on June 21, dropping 6.39% to trade at $6.88. The correction pushed its market capitalization down to $4.32 billion, a decline of 7.12% within 24 hours.

Despite this drawdown, daily trading volume surged to $605.71 million, rising 15.74%. However, the market cap ratio stands at 14.11%, indicating moderate engagement relative to valuation.

UNI Struggles Between Key Levels as Momentum Fades

Technically, UNI finds itself sandwiched between key support and resistance levels. Immediate support rests at $6.69. If this threshold collapses, bears may drive prices toward the early-June pivot near $6.30. 

Conversely, resistance at $7.13 remains formidable. A breakout above this zone could trigger a corrective wave toward the $7.58 region, though recent momentum casts doubt on such recovery.

The RSI (14) reveals weakening strength at 48.81, drifting below its signal line of 57.53. This divergence underlines a fading bullish impulse, suggesting potential continuation of the current downtrend. Moreover, the Relative Strength Index failed to reclaim the 50 mark, reinforcing bearish sentiment despite short-lived rallies.

Meanwhile, the Chaikin Money Flow (CMF) hovers at 0.04, barely positive. It reflects subdued capital inflows, hinting that larger investors remain hesitant. Though not entirely bearish, the marginally bullish CMF aligns with the broader narrative of cooling demand.

No moving average crossover has recently emerged to suggest directional shifts. The lack of a bullish crossover between short- and long-term averages implies an ongoing consolidation phase. In the broader context, UNI’s circulating supply stands at 628.73 million tokens out of a capped 1 billion.

Despite intraday volatility, UNI holds within a broader descending pattern. Market participants should monitor $6.69 and $7.13 closely, as either break could dictate the next directional leg. 

Highlighted Crypto News Today
Is the Bear Trend Strengthening for Virtuals Protocol (VIRTUAL)?