In recent days, we mentioned that one of the biggest DeFi altcoins could experience further losses. Current data indicates that the popular cryptocurrency has lost a critical support for further decline. So, if the expected scenario comes true, how low will the price drop?
Uniswap (UNI) Coin
Uniswap sellers took control of the market on August 31 and opened the way for a downward break from the short-term range of $4.50 and $4.94. However, at the time of writing this article, the price movement was rising towards the lowest level of the range. Despite the recent decline, the protocol revenues were still strong. Among the protocols generating the highest DeFi transaction fees, Uniswap had over 50% share. So, we can easily say the same thing for Uniswap as we can say for Binance among centralized exchanges.
The $4.50 support level created a sticky resistance during the recovery in June. Therefore, if BTC negativity continues, the UNI Coin price could drop to $3.64. The possible downside scenario could offer a buying opportunity at even lower prices for latecomers to sell.
UNI Coin Analysis
In the downside scenario, the levels of $4.20 and $3.94 seem to be reasonable profit-taking areas for short sellers. However, if the price can make closings above $4.50 and the $4.67 region is convincingly reclaimed, this will invalidate the downside scenario.
RSI and CMF are favoring the bears. According to Coinglass, $860,000 worth of UNI long positions were liquidated in the last 12 hours. During the same period, short sellers experienced liquidations of less than $10,000. However, weighted funding rates showed signs of an impressive recovery, indicating increased sensitivity. Closings above $4.50 could therefore lead to a surprising rebound.
Bitcoin price continues to stay below $26,000 at the time of writing. It must protect the critical $25,400 level. Although tested multiple times in the past 30 days, this level has been defended. However, closings below it could lead to a drop to $23,500.
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