A long-term price analysis of Uniswap over the last few months shows a larger bearish undertone for UNI price action .
The bears appear to have won and are pushing the price of the cryptocurrency lower on the chart. As an effect of the bears' dominance over the market, the price of Uniswap has dipped to the $5.3 zone and now sits at $5.64.
The bears appear to have gathered enough strength to push the price of the cryptocurrency even lower. Nonetheless, UNI has hit a slightly short-term solid support and may be on its way to a market reversal.
After ranging from $5.42 to $7.07, the cryptocurrency has fallen by 11% over the last day and is down by 19.53% in the previous seven.
Its market cap has also declined by 10% and now sits at 4.3 billion with a daily trading volume of 426 million dollars.
Uniswap has been under a descending trendline that has been valid since December 2021.
After breaking this trendline to the bottom in January 2021, the price action of UNI has tested it four times.
Once in February, once in April, another in August, and then once in November. All four times, UNI has failed to break above this trendline, concluding that UNI is bearish over the medium and long terms.
After testing this trendline around the $7.9 zone, the price of the cryptocurrency was rejected by the bears, causing the 11% dip it now experiences.
The cryptocurrency is now testing minor support around the $5.6 zone, as illustrated by the blue line below.
The bulls are more than likely laying in wait for the bears at this price level, considering how the last time the $5.6 zone was broken, UNI traded lower and even hit the $3.5 zone.
If the bearish streak across the market continues, UNI may trade lower along with the rest of the market, hit the minor support around the $5.6 – $4.5 zone, and then fall further, as illustrated below.
If the bulls cannot hold the price at the $5.6 – $4.5 zone against the bears, UNI may decline and even hit a lower mark around the $3 support.
The $3 support is essential and may even be the bottom of the dip for UNI. This is true, considering that the cryptocurrency has tested this zone only twice: Once in December 2020 and once in June 2021.
If UNI eventually drops to this price zone, a reversal may happen, causing a price explosion that spills over into 2023 and beyond.
Recall that the cryptocurrency price is down more than 80% from its $45 high.
The RSI on the daily chart is trending towards the oversold zone, increasing the chances of a reversal anytime from now.
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