- Uniswap’s native token, UNI, faces a potential 20% decline after breaking critical support levels, with bearish market sentiment fueled by increased token inflows to exchanges.
- However, the upcoming v4 upgrade, promising improved infrastructure and liquidity features, could serve as a turning point for recovery if it generates renewed market confidence.
Uniswap’s native token, UNI, has been grappling with downward momentum, raising questions about its near-term prospects. With the highly anticipated v4 upgrade on the horizon, traders and investors are watching closely to see if this could reverse the recent slump or if UNI will continue its slide.
Breaking Down the Technicals: A 20% Decline Looms
UNI’s price has faced significant pressure, failing to maintain the critical $12.50 support level that had held firm for months. This breakdown has triggered a bearish sentiment, with analysts predicting a potential 20% drop, taking the token to the psychological support level of $9.50.
Despite this, UNI’s position above the 200 Exponential Moving Average (EMA) on the daily chart provides a glimmer of hope. The 200 EMA is a trusted indicator of long-term trends, and its current positioning suggests that UNI has not fully entered a downtrend yet. If market sentiment shifts, there may still be a chance for recovery.
Spot Inflows and Market Sentiment: A Mixed Bag
Recent on-chain data paints a challenging picture for UNI. Over $10.20 million worth of UNI tokens have flowed into exchanges in the past 24 hours, indicating that some investors, possibly long-term holders, are preparing to liquidate their positions. Such inflows often amplify selling pressure, potentially driving prices even lower.
However, the upcoming v4 upgrade introduces a layer of unpredictability. Market participants are closely monitoring whether this major infrastructure overhaul can counteract the bearish momentum.
What’s in the v4 Upgrade?
Set for release next week, Uniswap’s v4 upgrade promises significant improvements to the platform. These include enhanced liquidity provisioning, support for hooks, and greater integration capabilities, which could elevate Uniswap’s ecosystem and attract renewed interest.
Although the upgrade has the potential to boost market confidence, the current muted sentiment indicates traders are adopting a cautious approach.
Final Thoughts: A Crossroads for UNI
As UNI faces bearish technical indicators suggesting a potential decline to $9.50, the forthcoming v4 upgrade could act as a pivotal moment. Traders should monitor key support levels and market reactions closely, as the upgrade’s success may determine whether UNI can stage a recovery or extend its downturn.
For investors, staying informed and agile is crucial, as the token’s price action is likely to hinge on both technical patterns and broader market sentiment post-upgrade.
