Uniswap (UNI) is trading near a critical point on Wednesday after price action weakened following a rejection at resistance. Analysts noted that there are mixed signals as downside pressure builds, while a larger pattern suggests a possible breakout move.
As of writing, UNI is trading at $3.95 with a decline of 1.64% in the past day. The market activity also slowed, with the trading volume falling by 20.63% to $268.94 million. The token has gained 3.3% over the past seven days, according to CoinMarketCap.
Source: CoinMarketCap
Cryptorphic, an analyst, pointed out that UNI fell below the support of a rising trendline. This indicates that there is a change in the short-term structure. However, the token saw a rejection in the $4.10 and $4.20 range. These levels were acting as upper resistances.
After the rejection, cryptocurrency is getting closer to the $4.00 price level. The analyst pointed out that the structure is weak in the short term. If the price fails to hold at the $4.00 price level, the next liquidity zone may be at $3.40 and $3.50.
Analyst further added that a move above the $4.07 to $4.10 range will be required to resume bullish momentum. Until then, the market bias will favour the downside.
Source: X
Also Read: Uniswap Flashes Ascending Triangle: Is a 30% Price Move Next?
Moreover, another analyst, Ali Martinez, mentioned another technical perspective. UNI is currently in a consolidation phase of an ascending triangle formation. This type of formation indicates a potential 30% move.
The price is currently trading within a range between resistance at $4.10 and ascending support at $3.80. Martinez referred to this as a no-trade zone. The next trend is determined by a confirmed move outside this range.
A close above $4.10 on a four-hour candle could be a breakout confirmation. The focus would then be on the $5.00 to $5.30 price range. However, a move below $3.80 could invalidate this structure.
If the lower support breaks, the price of UNI may experience a sharp drop, as the analyst indicated that it may correct by 30%. As a result, the price may return to the February lows around $2.80.
Source: X
CoinGlass data shows reduced activity as the volume decreased by 24.37% to $285.82 million. Open interest also declined by 0.90% to $253.49 million, with the OI-weighted funding rate at 0.0058%.
Source: CoinGlass
Also Read: Solana Targets $115 Breakout as Overhead Supply Continues to Decline
