- Uniswap (UNI) drops as a 500,000-token sale intensifies selling pressure.
- A break below $6.90 could trigger further losses.
Uniswap (UNI) faced renewed selling pressure after a large trader sold 500,000 UNI tokens worth $3.89 million. The sale added to bearish momentum, leaving the token vulnerable to further losses as its price traded below key short-term moving averages.
UNI was trading at $7.27, down 7.51% over 24 hours, according to the supplied market analysis. Meanwhile, a recent burn of 38,000 UNI tokens reduced the circulating supply, but the move has yet to offset the pressure from large-scale selling.
Large UNI Sale Weighs on Price Despite Token Burn
The sale of 500,000 UNI tokens introduced significant selling volume into the market. At an estimated value of $3.89 million, the transaction added pressure as traders reacted to weakening price momentum.
Uniswap also permanently removed 38,000 UNI from circulation through its fee-and-burn mechanism, according to Tokenpost. The reduction in supply could support UNI’s long-term fundamentals by limiting the number of tokens available in the market.
However, the burn has not prevented short-term weakness. The large trader’s sale and broader selling activity continue to weigh on price performance.
UNI Price Falls Below Key Moving Averages
UNI’s technical indicators point to continued bearish momentum. On the hourly chart, the token trades below the 20-period moving average at $7.773 and the 50-period moving average at $8.0478.
The Ichimoku Kijun level at $7.7645 also acts as nearby resistance. UNI would need to reclaim these levels to signal a potential short-term recovery.
Momentum indicators reinforce the negative outlook. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) indicate bearish conditions, while the Relative Strength Index (RSI) stands at 28.2.
An RSI reading below 30 typically signals oversold conditions. This suggests UNI has experienced intense selling, although an oversold reading alone does not confirm that a rebound is imminent.
UNI Price Prediction: Can $6.90 Support Hold?
The $6.9051 level remains a key price point for UNI in the near term. According to the supplied analysis, the token could trade between $6.9051 and $7.6349 over the next two to three trading sessions.
A break below $6.9051 could expose UNI to further losses as selling pressure builds. Conversely, a move above $7.7645 could improve the short-term outlook and signal a possible reversal.
The analysis expects sideways trading to remain a possibility if UNI holds its current range. However, continued bearish momentum leaves the token vulnerable to another decline.
Uniswap’s Long-Term Outlook Faces a Short-Term Test
Viktoras Karapetjanc, an expert at Traders Union, views the token burn as a positive development for UNI’s long-term fundamentals. He also notes that external selling activity and negative market momentum continue to limit the token’s near-term recovery prospects.
A reduction in circulating supply may support prices over time, but its impact depends on demand and broader market conditions. For now, traders are watching whether UNI can hold the $6.9051 support level or reclaim resistance near $7.7645.
The next move around these levels could help determine whether Uniswap stabilizes or extends its recent decline.
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