Uniswap [UNI] broke several psychological levels as it fell from grace amidst a massive bloodbath triggered by panic selling. With the latest downswing, UNI extended its weekly loss to 36.10%. The latest Bitcoin and Ethereum capitulation has been damaging for the entire market including the defi tokens.
This evidenced that the large investors of the defi token could have potentially dumped their positions that resulted in the leverage traders bearing the brunt.
Uniswap [UNI] declined by a fresh 22.71% over the past 24-hours which drove its price to $24.51. At the time of writing, the digital asset registered a market cap of $13.48 billion and a 24-hour trading volume of $2.42 billion.
Uniswap [UNI] Daily Price Chart:
Prior to the crash, Uniswap [UNI] formed an ascending parallel channel which foreshadowed a similar market movement. The pattern has been shaping up since mid-March and broke this week, as the wider crypto market sustained sharp bear rallies.
The moving averages also shifted above the UNI price candles soon after depicting an increasing downside pressure in the coin market. The decreasing gauge between the 50 DMA [Pink] and 100 DMA [Blue] was also worrying as it could be a precursor of a bearish crossover.
The ultra-bearish technicals on the daily UNI chart indicated selling took place at higher levels.
The rising momentum favoring the bears was depicted by the formation of red closing lines of Awesome Oscillator. The MACD also witnessed an extension to its bearish crossover suggesting a major setback in the buying demand.
In line with this, the RSI dipped below the oversold condition demonstrating a strong selling pressure in the market which cracked several support levels. If the bulls purchase this dip, a relief rally could be in the offing. This rally may face stiff resistance at $30 and then again at the moving averages.
Uniswap’s [UNI] rally may face stiff resistance by the moving averages at $31, $35 as well as the recently established high of $43. Support levels, on the other hand, were found to be at $18.8 and $11.57 respectively.