Uniswap’s UNI token came under renewed downside pressure this week after breaking below a major weekly support zone, signaling a shift in higher-timeframe market structure.
According to crypto analyst Crypto Pulse, as of Thursday, January 29, price action completed a head-and-shoulders pattern on the weekly chart, with the neckline located between the $4.7 and $5.6 range.
Last week’s candle closed below this structure, pointing to weakening demand and increasing bearish control amid softer conditions across the decentralized finance market.
Source: Crypto Pulse X Post
Despite the confirmed breakdown, UNI has not yet experienced aggressive follow-through selling, keeping short-term price action relatively compressed.
Crypto Pulse notes that a decisive weekly close below the $4.7 level would strengthen the bearish setup and potentially open the door toward a projected downside target near $2.
Until that occurs, former support levels are expected to act as resistance, reinforcing cautious positioning among market participants.
UNI Turns Bearish as Momentum Indicators Weaken
According to TradingView data, as of Thursday, January 29, UNI is still in a clear short-term downtrend, as indicated by the daily chart.
The price is still below the Ichimoku cloud and below the Tenkan-sen and Kijun-sen lines, indicating a strong bearish bias in the short term. The future direction of the Ichimoku cloud is flat and slightly declining, which is capping the price recovery in the area of $5.0-$5.4.
Source: TradingView
Momentum indicators also continue to support the bearish view. The Relative Strength Index is still close to the 30 level, indicating that the stock may still be oversold but not yet showing a bullish divergence. The MACD indicator also shows that the bearish momentum is still active, as the MACD and its signal line continue to decline.
OKX Goes Live on Uniswap, Expanding DeFi Access
Despite this bearish formation, OKX increased its decentralized finance offerings on Thursday, January 29th, as it went live on the Uniswap platform.
This allows users to have access to one of the largest liquidity pools within the decentralized finance environment. This allows users to trade more efficiently within the OKX environment.
With the help of Uniswap’s on-chain infrastructure, OKX is looking to improve speed and reduce slippage, especially during periods of higher volatility.
However, this move is expected to strengthen Uniswap’s position in the DeFi stack, and market participants are still looking at the weakening price structure of UNI as they try to determine whether the ecosystem can overcome the technical pressure.
Also Read: Uniswap (UNI) may reach $8.70 target if buying momentum continues
