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Uniswap (UNI) price could be looking at sideways movement instead of further drawdown, given that it has already declined considerably.
The broader market cues and investors’ actions together are sending mixed signals.
Uniswap Consolidation Ahead
Uniswap’s price has been attempting to invalidate a key barrier for some time now but has been unsuccessful. Consequently, UNI has noted a drawdown, bringing it to the critical support floor.
The altcoin, however, is seemingly vulnerable to further decline, as evidenced by the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100. It helps identify overbought or oversold conditions in a market, indicating potential reversal points.
This indicator is currently in the bearish zone, below the neutral line marked at 50.0. A dip into this zone is considered as a hint that the crypto asset could potentially fall further.
On the other hand, the investors are suggesting a different outcome for UNI. While broader market cues don’t support a rise, investors strongly hope for recovery.
This is visible in the unbroken uptick of the Mean Coin Age (MCA). This is a metric that calculates the average age of all coins in a cryptocurrency network, reflecting the time since each coin was last moved. It helps gauge the level of long-term holding and potential market sentiment.
The continuous uptick in this indicator indicates that the sentiment among UNI holders is that of HODLing. A downtick, however, suggests selling is taking over.
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Since Uniswap is the former, its price could counter the market’s bearish cues.
UNI Price Prediction: Key Levels to Watch
Uniswap’s price dropped by more than 9% in the last 24 hours, bringing the altcoin to change hands at $9.4. As a result, UNI lost support of $10.0 and is looking to test $9.0 as the next critical support floor.
This level has been tested multiple times in the past. The aforementioned cues are giving out mixed signals, suggesting sideways price action is the likely outcome. $9.0 and $11.6, the resistance UNI failed to breach, will form the limits of consolidation.
Read More: Uniswap (UNI) Price Prediction 2023/2025/2030
But if the bearish cues dominate the market, it would not be surprising to see Uniswap’s price break down below $9.0. This would send the altcoin to $8.2 or lower, invalidating the bullish thesis as a result.